Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter

Shiba Inu price has crashed in the past few days, moving from a low of $0.00001300, down from this month’s high of $0.00001475. Technical analysis, the ongoing chatter of a spot SHIB ETF, and the crashing supply in exchanges mean that tu coin may soon rebound.

Shiba Inu Price Technical Analysis Signals a Rebound is Coming

The daily timeframe chart reveals that the Shiba Inu price has retreated this week as investors wait for the Federal Reserve interest rate decision.

This crash could be about to end as the coin has slowly formed a symmetrical triangle pattern. The upper side of this triangle links the highest level in May, July, and September.

On the other hand, the lower sides of the triangle pattern connects the lowest levels in April, June, and September. These two lines are now about to converge, a situation that may trigger a major move in either direction. The move will depend on the fundamentals, and as described below, there are some positive signs of a rebound.

A strong SHIB price rebound will push it to a high of $0.00001760, the highest level in May this year, which is about 35% above the current level.

On the other hand, a move below the lower side of the triangle will invalidate the long-term SHIB price forecast and point to more downside, potentially to the support level at $0.00001013, the lowest level in April this year.

SHIB ETF, Falling Exchange Balances, and Smart Money Buying

The main bullish catalyst for the Shiba Inu Coin price is that it may surge when the Fed cuts interest rates later on Thursday. A cut will likely stimulate a risk-on sentiment among investors, which will boost the crypto market higher in the near term.

Seasonality will also help boost the price as the crypto market often does well in the fourth quarter of the year. The average return of Bitcoin in the fourth quarter since 2013 is over 80%. 

Meanwhile, with investors focusing on the upcoming Dogecoin ETF trading, there is chatter that one or more companies will file for a SHIB ETF. Besides, some firms have already filed for ETFs tracking smaller meme coins like Pudgy Penguins, Floki, and Bonk.

In a recent statement on its X platform, Shibarium noted that there is a case for a SHIB ETF as it has expanded its utility beyond the meme coin sector. In addition to its famous coin, it has launched Shibarium, a layer-2 network competing with other popular names like Base and Arbitrum.

On-chain data shows that the balances of Shiba Inu coins in exchanges has plunged to 283 trillion, down from 290 trillion in August, while smart money investors have boosted their holdings to 11.7 billion. That is a sign that these investors expect the coin to rebound soon.