- The article discusses Shiba Inu’s recent price drop of over 20% amid a broader decline in meme coins, forecasting a potential additional 10% decline for a liquidity sweep strategy.
- Technical indicators suggest bearish sentiment, but bullish scenarios could unfold if key resistance levels are surpassed, potentially leading to significant gains.
Shiba Inu (SHIB) investors have been on a rollercoaster ride recently, with the cryptocurrency experiencing significant price fluctuations amid a broader downturn in meme coins. Following a steep drop of over 20% after breaking out of a neutral triangle pattern, SHIB now faces the possibility of extending its decline by another 10% as part of a liquidity sweep strategy.
Bearish Sentiment Grips SHIB Market
The recent downturn in Shiba Inu price mirrors the broader trend seen across meme coins, which often follow the price movements of Bitcoin during bullish phases. With Bitcoin experiencing a decline, SHIB, along with other meme coins like Dogecoin and Pepe, has also seen its value drop.
Technical indicators point to a bearish outlook for SHIB, with indicators such as the Moving Average Convergence Divergence (MACD) histogram and the Relative Strength Index (RSI) signaling a lack of buying pressure and potential further downside.
Potential 10% Drop Ahead
Analysts suggest that SHIB could see a further decline of around 10% from its current levels, potentially finding support around the $0.000025 threshold. If this level fails to hold, SHIB may continue lower to collect buy-side liquidity below this point.
Bulls Await Opportunity
However, despite the bearish sentiment, there is still hope for SHIB bulls. If the market sentiment shifts and buyers regain control, SHIB could reverse its downward trajectory. Key resistance levels to watch include $0.000029 and $0.000031, with a daily candlestick close above these levels potentially triggering further buying pressure.
Navigating the Path to Recovery
In a highly bullish scenario, SHIB could aim for the critical 61.8% Fibonacci retracement level, signaling a potential rally towards $0.000045. This would not only invalidate the bearish thesis but also mark a significant climb of nearly 70% from current levels.
While Shiba Inu faces short-term challenges amid the broader downturn in meme coins, the cryptocurrency remains resilient, with both bulls and bears closely monitoring key levels and technical indicators. Investors should exercise caution and remain vigilant as SHIB navigates its path to recovery in the volatile cryptocurrency market.
