Hopium Fuels Shiba Inu ETF Speculations As SHIB Faces 75% Drop Risk
PATNA (CoinChapter.com) — Shiba Inu (SHIB) price has struggled to hold any meaningful ground lately. After falling from its Aug. 2024 highs, the meme token has faced consistent bearish pressure, with traders unable to sustain significant momentum.
Over the past two weeks, SHIB has dropped by nearly 10%, flirting dangerously with key support levels. The price action underscores the inherent volatility and lack of direction in the SHIB market.
Shiba Inu ETF speculations have been doing the rounds on Social media.
Enter the latest head-scratching development: a tweet claiming Wall Street experts predict the launch of a SHIB ETF. Yes, that’s right—an ETF for one of the most volatile and meme-driven tokens in existence.
While the notion is amusing, it’s also wildly unrealistic. A token with no solid use case, limited institutional interest, and a market driven by social media hype is not exactly ETF material. It’s safe to say that SHIB won’t be entering the elite ETF club anytime soon, despite the desperate hopium circulating online.
Complicating the matter for the SHIB USD pair is a bearish pattern.
Token Testing Resistance Of Bearish Pattern
The SHIB USD pair has formed a ‘descending triangle,’ a bearish pattern. SHIB prices are testing the pattern’s upper trendline resistance.
SHIB USD pair has formed a bearish setup with a 75% downside target. Source: Tradingview
Analysts identify the descending triangle as a bearish continuation pattern, characterized by a descending upper trendline that compresses price action into lower highs, while a flat lower trendline provides weakening support.
Moreover, the setup intensifies selling pressure as rallies struggle to breach resistance, leading to progressively weaker buyer attempts. The battle between bulls and bears typically ends with a breakdown below the lower trendline.
Traders estimate the potential downside by measuring the vertical distance from the highest point of the triangle to the flat support line, projecting this distance downward from the breakout point.
If the SHIB USD pair confirms the pattern, the Shiba Inu coin could drop about 75%, with a target near $0.0000046.
Bearish Pressure Forces Shiba Inu Price To Pare Gains
Meanwhile, the Shiba Inu coin price dropped over 5% to reach a daily low near $0.0000177 on Oct. 7, suggesting a strong bearish presence around $0.000019.
SHIB USD daily price chart with RSI.
The SHIB price had been recovering from its late Sept. 2024 downtrend. However, the uptrend seems to be running out of juice, and the SHIB USD pair could drop to support near $0.0000163. Moreover, failure of the immediate support level might force the Shiba Inu coin price to test support near $0.0000143.
Conversely, if the memecoin starts rallying, SHIB price could face resistance near $0.000018. Breaking above the immediate resistance might help the Shiba Inu coin price target the resistance near $0.0000204 before retreating.
The RSI for SHIB remained neutral, with a score of 59.37 on the daily charts.
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