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The recent Shiba Inu price retracement has pushed the meme coin to a key Fibonacci level recognized as a good entry point.
Notably, Shiba Inu has relinquished most of its early January gains, with the broader market uncertainty breeding the correctional momentum. A poor start to this week further piles pressure on the token’s price, but has now brought it to a key price level, seen as a good long-term buy opportunity.
Key Points
- Shiba Inu has relinquished most of its early January gains, with the broader market uncertainty breeding the correctional momentum.
- The recent Shiba Inu price retracement has pushed the meme coin to a key Fibonacci level recognized as a good entry point.
- Amid the downtrend, Shiba Inu reached the 0.786 Fibonacci level on the 4-hour timeframe.
- $SHIB had dropped to a low of $0.00000745 in Asian time on Monday, joining a broader market trend spurred by macroeconomic uncertainty.
- This is likely a short-term correction, which may represent a “sweet spot” for long-term Shiba Inu buys ahead in a recovery.
Sweet Spot for a Shiba Inu Buy?
Notably, a TradingView analysis from “Vivaforexwithcaro” highlighted this price action in an early Monday post. Specifically, Shiba Inu has just reached the 0.786 Fibonacci level on the 4-hour timeframe, as last week’s poor performance spills into the current week.
$SHIB had dropped to a low of $0.00000745 in Asian time on Monday, joining a broader market trend spurred by macroeconomic uncertainty. The chart shows it reached a key support level marked in pink in an accompanying chart. This demand zone closely aligns with the 78.6% Fibonacci extension.
Nonetheless, the analyst views this as a short-term correction. As a result, he called the current level a “sweet spot” for long-term Shiba Inu buys in preparation for a recovery.
Shiba Inu Structure Looks Weak
Overall, Shiba Inu has struggled to sustain any upward momentum. In early January, it started the year as most cryptocurrencies did, rallying over 25% from around $0.00000691 to $0.00001009 on January 5, removing one zero.
That has been the peak price so far this year, as the token has corrected by 22% to the current price of $0.00000785. Further, the analyst’s chart shows Shiba Inu broke below an ascending support trendline around $0.0000083, further confirming weak price momentum.
While Shiba Inu showed a notable lower price rejection at its 4-hour close, it generally looks weak. How it would react to the 0.786 Fibonacci level and the broader crypto trend would influence its near-term price development.
Further Analytical Perspective
Meanwhile, other analysts have also shared mixed outlooks for Shiba Inu. For context, $SHIB KNIGHT is similarly optimistic with today’s analysis, insisting it was time to “send” Shiba Inu. His bullish disposition stems from a recent breakout of a descending trendline.
However, MMB Trader remains conservative. While he is bullish on the asset’s long-term trajectory, he highlighted that Shiba Inu is “dead” as long as it trades below the key resistance level at $0.00001165 and $0.000014.