Shiba Inu (SHIB) finds itself battling significant market headwinds, having endured a period of intense bearish pressure despite a recent fleeting rally. This temporary surge, fueled by Bitcoin's performance, has done little to alter the memecoin's entrenched long-term downtrend, prompting critical strategic considerations for investors.
Temporary Gains Amidst Bearish Tides
The past week proved challenging for Shiba Inu, with its value plummeting by 11.49%, aligning with a broader 13.5% decline across the memecoin sector. This sustained bearish sentiment saw large holders continuing to offload their SHIB holdings. A notable exception occurred on Friday, February 6th, when a 19% relief rally in Bitcoin sparked a substantial 22.46% surge for SHIB. However, this impressive daily gain was largely seen as a temporary reprieve, failing to alter the established long-term bearish trajectory.
Technical Headwinds and Trader Strategy
From a technical perspective, Shiba Inu's outlook remains firmly bearish on the 1-day timeframe, marked by a new swing low and an MACD deep within negative territory, indicating strong selling momentum. Analysts have identified key resistance levels through Fibonacci retracement at $0.00000758, $0.00000817, and $0.000009. These levels are reinforced by daily imbalances that could act as supply zones, potentially capping any upward movement. Given the overarching market sentiment and continued whale activity, the prevailing advice for traders is to leverage any price bounce to these specified retracement levels as an opportune moment to sell, anticipating a resumption of the bearish trend. While a more substantial Bitcoin rally could theoretically propel SHIB higher, this outcome is currently considered improbable, underscoring the prevailing cautious outlook for the memecoin's near-term prospects.
