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.