Shiba Inu price could drop 10% before SHIB becomes attractive again for buyers
|- Shiba Inu price is testing a critical support due to the ascending trendline
- SHIB could drop 10% to $0.0.000024 as meme coins continue to damp, save for FLOKI and BOME.
- A H3 candlestick close above $0.000029 would invalidate the bearish thesis.
Shiba Inu (SHIB) price is trading with a bearish bias, following in the steps of the Bitcoin of meme coins, Dogecoin (DOGE), which is down around 2%. As sector tokens continue to dump, the only outliers are Floki Inu (FLOKI), and the Book of Meme (BOME).
Also Read: Can Shib, Doge, Floki and Book of Meme kick-start a rally after Avalanche's meme coin program?
Shiba Inu price likely to drop 10%
Shiba Inu price is on a defined downtrend, consolidating within a descending trendline on the 3-hour timeframe. More closely, the meme coin is barely holding above support due to an ascending trendline.
However, with the Relative Strength Index (RSI) sustained below the 50 mean level, the market is bearish, accentuated by the Awesome Oscillator (AO), which is also barely bullish.
With such an outlook, Shiba Inu price could drop to the 0.000024 support, based on the Fibonacci retracement indicator, before a possible recovery rally. Such a move would constitute a 10% fall below current levels.
SHIB/USDT 3-hour chart
On-chain metric support bearish outlook for Shiba Inu price
The Network Realized Profit/Loss metric, which has recorded positive spikes in the last two weeks, shows consistent profit-taking by SHIB holders. This has happened alongside the asset’s price correction.
SHIB Santiment: Network Realized Profit/Loss
Besides the Network Realized Profit/Loss metric, another measure that bolsters the bearish thesis is the decline in address activity. Both the number of active addresses and the Network Growth (or the number of new addresses) have declined, signaling a shift in interest from market participants.
SHIB Santiment: Active Addresses and Network Growth
On the other hand, if the bulls come in now and hold the Shiba Inu price above the ascending trendline, the altcoin’s market value could push north. A decisive candlestick close above the $0.000029 resistance level on the three-hour timeframe would invalidate the bearish thesis.
In a highly bullish case, Shiba Inu price could extend the gains to the mid-level of the market range, marked by the 50% Fibonacci placeholder at $0.000034. This would denote a 305 climb above current levels. A flip of this blockade into support would encourage more buy orders, potentially propelling SHIB towards greater heights.
(This story was corrected on March 25 at 06:15 GMT to say a retracement of Shiba Inu price to the 50% Fibonacci placeholder at $0.000034 would denote a 30% climb above current levels, not 305 climb.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.