- Shiba Inu has retraced to the 0.786 Fibonacci level, a zone often watched for long-term entries
- SHIB has given up most of its early January gains and remains structurally weak in the short term
- Analysts are split, with some viewing the pullback as a buying opportunity and others waiting for key resistance breaks
Shiba Inu’s recent price retracement has pushed the meme coin back into a level that many technical traders recognize immediately. After giving up most of its early January gains, SHIB now sits at a key Fibonacci retracement that is often viewed as a potential entry area, especially for longer-term positioning.
The broader market hasn’t helped. Macro uncertainty has weighed on crypto sentiment, and Shiba Inu has followed that pressure lower. A weak start to the week only added fuel to the correction, but it also dragged price into a zone that historically attracts attention rather than panic.
A “Sweet Spot” According to Fibonacci Levels
A TradingView analysis shared by Vivaforexwithcaro earlier this week highlighted the move clearly. On the 4-hour timeframe, Shiba Inu has retraced to the 0.786 Fibonacci level, an area often associated with deeper pullbacks that still remain within a broader corrective structure.
During Asian trading hours on Monday, SHIB dipped to around $0.00000745, tracking a wider market sell-off driven by macro headlines. On the chart, that level lines up closely with a marked demand zone, one that overlaps almost perfectly with the 78.6% Fibonacci retracement.
Despite the weakness, the analyst views this move as a short-term correction rather than a trend collapse. From that perspective, the current zone is described as a “sweet spot” for long-term accumulation ahead of any broader recovery, assuming the market stabilizes.
Momentum Remains Fragile for Now
Zooming out, Shiba Inu’s structure still looks shaky. The token started January on a strong note, rallying more than 25% from roughly $0.00000691 to $0.00001009 by January 5, briefly removing a zero and lifting sentiment across the board.
That move didn’t last. Since then, SHIB has corrected about 22%, sliding back toward the $0.0000078 area. The same chart shows price breaking below an ascending support trendline near $0.0000083, another sign that upward momentum has faded.
There was some lower-wick rejection on the 4-hour close, suggesting buyers are at least reacting to this zone. Still, the overall structure remains weak. How SHIB behaves around the 0.786 Fibonacci level, and how the broader crypto market trends from here, will likely shape its near-term direction.
Analysts Remain Split on What Comes Next
Not everyone sees the current setup the same way. Analyst SHIB KNIGHT has taken a more optimistic stance, arguing that it may be time to “send” Shiba Inu following a breakout from a descending trendline. That view leans heavily on the idea that the recent pullback is simply resetting momentum.
Others remain more cautious. MMB Trader, for example, maintains a long-term bullish outlook but notes that SHIB remains effectively “dead” as long as it trades below key resistance levels at $0.00001165 and $0.000014. Until those zones are reclaimed, upside expectations stay capped.
For now, Shiba Inu sits at an inflection point. The price looks weak, but it’s also sitting in a zone that historically invites interest rather than indifference. Whether this turns into a genuine long-term opportunity or just another pause before further downside depends on what happens next, both on the chart and across the broader market.
