Will Shiba Inu (SHIB) Price Explode After the Fed Rate Cut?

The market is standing at a crossroads, and so is Shiba Inu price. The Federal Reserve’s anticipated rate cut to 3.75%–4% signals the beginning of a policy shift that could ripple across risk assets. For traders, this isn’t just about cheaper borrowing—it’s about liquidity, sentiment, and how much appetite investors still have for risk.

Shiba Inu price, like most meme coins, tends to move faster than fundamentals can explain. It thrives in environments where liquidity expands and speculation returns. The upcoming Fed meeting, coupled with talk of ending quantitative tightening by December, could be the spark that reignites momentum across altcoins. But here’s the catch: the Fed is deeply divided, inflation is sticky, and the U.S. government shutdown has blurred key data signals.

That uncertainty is mirrored perfectly in SHIB’s chart—a coin caught between consolidation and breakout, waiting for a macro trigger to decide its fate.

The Setup: Fed Rate Cuts Meet Market Uncertainty

The Federal Reserve’s expected move to cut interest rates to a range of 3.75%–4% comes at a time when the crypto market is searching for direction. Normally, rate cuts fuel risk assets like Bitcoin and altcoins, since cheaper borrowing and increased liquidity tend to push investors toward speculative markets. But this time, the picture isn’t that simple.

The Fed is divided, data is incomplete due to the prolonged government shutdown, and liquidity is tightening. These factors are creating hesitation among traders—especially in high-volatility assets like Shiba Inu price. The end of quantitative tightening, likely by December, could inject new optimism into markets, but the lack of clarity from Jerome Powell and other Fed officials keeps sentiment fragile.

Chart Breakdown: SHIB Price Consolidates in a Narrow Range

Looking at the SHIB/USD daily chart, the Shiba Inu price is moving within a narrow consolidation range around 0.00001013. The Bollinger Bands have squeezed tightly, signaling reduced volatility but also hinting at an impending breakout. This kind of compression phase often precedes sharp directional movement.

The Fibonacci retracement levels show SHIB price struggling to break above the 0.618 zone near 0.0000108. Multiple failed attempts at this level suggest strong overhead resistance. Meanwhile, support remains around the 0.0000095–0.0000096 range, which aligns with the 0.786 retracement level and the lower Bollinger Band.

Momentum indicators (based on recent Heikin Ashi candles) show indecision: small-bodied candles with little directional bias, confirming a market in wait-and-see mode.

Liquidity and Sentiment: The Real Drivers Ahead

If the Fed follows through with rate cuts and ends quantitative tightening in December, liquidity will start to return to the system. Historically, this benefits crypto assets—especially meme coins like SHIB price that thrive during liquidity expansions. However, the market’s focus on inflation risks and weak job data could keep institutional investors cautious in the short term.

The keyword here is “timing.” If liquidity injection aligns with a clear inflation slowdown, risk appetite could spike again—driving capital into speculative altcoins. But if inflation surprises on the upside, expect renewed risk aversion and potential outflows from meme assets.

The Fed’s Indecision Mirrors SHIB’s Technical Stalemate

Interestingly, SHIB’s chart reflects the Fed’s tone: uncertain, cautious, and undecided. Just as the Fed doesn’t want to commit to an aggressive rate-cut path, SHIB traders are hesitant to push the token decisively above or below key levels.

The 0.0000100 psychological level is acting as a pivot point. If the price closes multiple daily candles above the 0.618 retracement (around 0.0000108), it could confirm a short-term reversal targeting 0.0000118–0.0000125. Conversely, a breakdown below 0.0000095 could trigger a deeper correction toward 0.0000088 or even 0.0000080.

Short-Term Shiba Inu Price Prediction: Accumulation Before the Next Macro Catalyst

Given the tight Bollinger squeeze, SHIB looks primed for a breakout in the next few sessions. But the direction will likely depend on the Fed’s communication tone during Powell’s press conference. If the statement hints at ending QT and maintaining a dovish outlook, SHIB could rally toward 0.0000115 in early November.

If Powell strikes a cautious note about inflation or signals fewer cuts ahead, SHIB may retest the lower support at 0.0000090 before stabilizing.

Long-Term Shiba Inu Price Prediction: December Could Be the Turning Point

SHIB’s broader trend remains bearish from the September highs, but macroeconomic shifts could change the tide. A confirmed end to quantitative tightening and sustained rate reductions would likely improve liquidity across the market, benefiting meme coins again by December.

However, SHIB price will need a clear breakout above 0.0000120 with strong volume to confirm a shift back into a bullish trend. Until then, it remains a patience game for holders and traders alike.

So, Fed cuts add hope but uncertainty dominates the short-term outlook.

• $SHIB is consolidating tightly around 0.0000100—breakout likely soon.
• A dovish Fed tone could spark a short-term rally; a cautious stance might send SHIB lower.
• Watch for decisive closes above 0.0000108 or below 0.0000095 for direction.
• December’s potential QT end could trigger a stronger recovery phase.