The recent Shiba Inu price recovery has stalled after hitting a crucial resistance level. It has slipped by 11% from its highest level this week. This crash may be reversed if a SHIB ETF is filed and approved this year, and if the funds capture 10% of Ethereum’s inflows.
The value of SHIB has risen by 2.5% over the last 30 days, and according to CoinGape, its market capitalization has increased to $7.9 billion.
Shiba Inu Price May Surge In Case of an ETF Filing and Approval
The Shiba Inu price remains in a deep bear market, having plunged by 60% from its highest point in November last year. A potential catalyst for the second-biggest meme coin would be a spot SHIB ETF application by one or more fund managers.
Besides, some top financial services companies have filed for over 70 ETF applications in the past few months. While XRP and Solana have dominated these applications, meme coins like Dogecoin, Bonk, and Official Trump have received several applications.
This means that the odds of at least one asset manager filing for a SHIB ETF application are high. That’s because Shiba Inu is one of the most actively traded meme coins in crypto. It has an active community of over 1.5 million holders, and it often ranks high in terms of Google Searches and social media mentions. Also, Shiba Inu has grown its ecosystem to include Shibarium, a layer-2 network, and ShibaSwap, a decentralized finance platform.
An eleven-month-old Change petition asking Grayscale to file for a Shiba Inu ETF has attracted over 11,000 verified petitioners.
What if a SHIB ETF Captures 10% of Ethereum ETF Inflows?
A Shiba Inu ETF would likely attract some inflows from Wall Street investors seeking exposure to meme coins. However, odds are that many large players in finance will keep off because of the perceived volatility.
Therefore, a potential scenario is one in which these ETFs capture at least 10% of Ethereum’s inflows. Such a move would be a bullish one for Shiba Inu price as it would be a sign that it has demand. Ethereum ETFs have attracted cumulative inflows of $2.4 billion. In our hypothetical situation, that would mean that these SHIB ETFs receive about $240 million inflows after their launch.
As a disclaimer, no Shiba Inu ETF has been filed yet, and Grayscale has not commented on the Change petition. Also, the 10% inflows estimate is hypothetical, and could be higher or lower depending on the prevailing market conditions.
It is also worth noting that it may take months or over a year for a SHIB ETF filed today to be approved. Just this week, the SEC delayed its approval of a spot XRP ETF to June. ETFs of other coins may take longer to be approved, a worse situation for Shiba Inu since no application has been made yet.
SHIB Price Prediction In Case of an ETF Approval
The daily chart provides a clear picture of what is going on with Shiba Inu price. This chart reveals that the coin bottomed at $0.00001080 this month. This price was not by accident as it coincided with the lowest level in August last year. It has formed a giant double-bottom pattern at that price, with its neckline at $0.00003340. This pattern often leads to a strong bullish breakout.
Therefore, based on this pattern, one can estimate the potential SHIB price forecast to be the neckline at $0.00003340. A surge to that level would imply a 147% increase from the current level. Also, a jump above that price would signal more gains to last year’s high of $0.00004560, up by 240% from the current level.
On the other hand, the bullish SHIB price will invalidate the double bottom pattern if it fails to hold the key support at $0.00001080. Such a move will point to more downside, potentially to $0.0000077, its November 2023 lows.
The post Here is Possible Shiba Inu Price if a SHIB ETF Captures 10% of Ethereum ETF Inflows appeared first on CoinGape.
