Shiba Inu Pullback Brings Price Back to a Historically Watched Fibonacci Zone

Source: CryptoNewsNet Original Title: Shiba Inu Pullback Brings Price Back to a Historically Watched Fibonacci Zone Original Link: 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 technical analysis 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, analysts view this as a short-term correction. As a result, the current level is called 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. Technical analysis 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 shared mixed outlooks for Shiba Inu. Some remain optimistic, insisting it was time to act on Shiba Inu, with their bullish disposition stemming from a recent breakout of a descending trendline.

However, some remain conservative. While bullish on the asset’s long-term trajectory, they highlighted that Shiba Inu faces resistance as long as it trades below the key resistance levels at $0.00001165 and $0.000014.