- Price retracement: SHIB fell to the 0.786 Fibonacci level after losing early January gains.
- Support and buying opportunity: Analysts view the current zone as a potential long-term entry point.
- Mixed outlook: Short-term weakness persists, but patient buyers may fuel a recovery.
Shiba Inu recently retraced to a critical Fibonacci level after losing most of its early January gains. The broader market uncertainty fueled selling pressure, pushing SHIB lower this week. While the short-term trend looks weak, analysts suggest the current level could offer a long-term buying opportunity. Traders now watch the 0.786 Fibonacci level closely as a potential entry point ahead of a market recovery.
Price Pullback Brings SHIB to 0.786 Fibonacci
Shiba Inu fell to $0.00000745 during Asian trading on Monday, joining the broader market’s downward momentum. TradingView analyst Vivaforexwithcaro highlighted this drop, noting the token reached the 0.786 Fibonacci level on the four-hour chart. This level aligns closely with a key demand zone, which could provide a floor for buyers looking for long-term positions.
The week started poorly for SHIB, and the correction has erased most of the gains from early January. At the start of the month, SHIB rallied from $0.00000691 to $0.00001009, gaining over 25 percent. That peak now seems distant as the token retraced roughly 22 percent to its current price near $0.00000785. Breaking below an ascending support trendline around $0.0000083 confirmed the weakening momentum.
While the short-term outlook shows vulnerability, the 0.786 Fibonacci level could act as a strong support. Traders often see this level as a “sweet spot” to enter long positions, anticipating a recovery. Lower price rejection seen at the four-hour close hints that buyers may step in to defend this area.
Analyst Perspectives on SHIB’s Near-Term Outlook
Different analysts have shared mixed views on Shiba Inu’s trajectory. SHIB KNIGHT remains optimistic after a recent breakout of a descending trendline, suggesting buying opportunities may appear soon. In contrast, MMB Trader stays conservative, emphasizing that SHIB could struggle unless it breaks resistance levels at $0.00001165 and $0.000014. Despite these differences, many agree the current correction is temporary.
Short-term weakness appears absorbed by patient buyers, who anticipate a rebound. The market’s broader trend and SHIB’s reaction to the 0.786 Fibonacci zone will likely determine near-term price movements. Traders should also consider macroeconomic conditions, which continue to influence crypto performance. Uncertainty has triggered pullbacks across various assets, including meme coins. Yet, strategic levels like the Fibonacci 0.786 often attract attention from buyers seeking lower-risk entries.
Overall, Shiba Inu’s short-term weakness may mask a longer-term opportunity. The key Fibonacci zone offers a benchmark for cautious investors to plan potential positions. While further volatility is likely, this area remains important for tracking SHIB’s recovery potential. For now, SHIB has retraced sharply but found a potentially strong support near the 0.786 Fibonacci level.
