Shiba Inu Price Prediction: SHIB might drop 10% for a liquidity sweep before next leg up

Shiba Inu (SHIB) is cutting down on the Sunday gains as part of an ongoing meme coin crash. It comes as Bitcoin (BTC) price continues to drop with meme coins known to take their cues from the pioneer cryptocurrency during bull markets.

Also Read: Shiba Inu Price Prediction: SHIB loses top 10 position to AVAX

Shiba Inu price eyes 10% fall before possible pullback

After a strong move north that saw SHIB sidestep AVAX by market capitalization metrics, Shiba Inu price is crashing alongside its sector peers like Dogecoin (DOGE) and Pepe (PEPE).

After breaking out of the neutral triangle, Shiba Inu price crashed over 20%, with traders now cashing in on the gains made during the attempted Sunday recovery.

The bears have the numbers, seen with the position of the Moving Average Convergence Divergence (MACD) histogram bars flashing red in negative territory below the zero line. The Awesome Oscillator (AO) also displays red bars with their volumes dwindling as they close in on the mean line. If the trajectory sustains, the AO could fall into negative territory as well.

Furthermore, the Relative Strength Index (RSI) is recording lower highs and lower lows, with the nosedive suggesting falling buying pressure.

With an outlook this bearish, Shiba Inu price could drop to find initial support around the $0.000025 buyer congestion level. If this level fails to hold, SHIB price could squat lower to collect buy-side liquidity that continues to reside below the aforementioned level. Such a move would constitute a fall of about 10% below current levels.

SHIB/USDT 1-day chart

On the other hand, if the bulls recover the market, Shiba Inu price would need to overcome the $0.000029 blockade before flipping the 50% Fibonacci placeholder into support at $0.000031. A daily candlestick close above this level would encourage more buying, typical FOMO, as traders would not want to miss out on the possible rally.

In a highly bullish case, Shiba Inu price could reach for the 61.8% Fibonacci retracement level, which is the most critical, and use it as the jumping-off point for extended gains.

Such a move would not only invalidate the bearish thesis but also pave the way for SHIB price to try and fill the market range at $0.000045, a level last seen on March 5. This would constitute a climb of nearly 70% above current levels.

Also Read: Pepe 15% surge could restart meme coin mania