Shiba Inu [SHIB] has been facing significant bearish pressure lately. According to an AMBCrypto report, whales and large holders have continued to offload SHIB too. In fact, Shiba Inu lost 11.49% of its value over the past week. This coincided with the memecoin sector falling by 13.5%.
Bitcoin [BTC] saw a sizeable bounce on Friday, 06 February. This 19% relief rally took Shiba Inu up by 22.46% on Friday. And yet, the longer-term trend remained bearish at press time.
Shiba Inu bounce could continue higher
On the 1-day timeframe, the structure and momentum remained firmly bearish. SHIB made a new swing low, and the bounce in recent hours of trading could be the start of a pullback.
The MACD did not record a bullish crossover and appeared to be deep within bearish territory, showing the extent of the recent downside.
Using the most recent swing move lower, a set of Fibonacci retracement levels was plotted. They showed that $0.00000758, $0.00000817, and $0.000009 were the resistances to watch out for. The first two levels also had an imbalance on the daily timeframe that could act as a supply zone in the event of a bounce.
Given the wider market sentiment and whale offloading, traders can use a bounce to these retracement levels to sell.
Arguing the bullish case
Bitcoin fell by 38% in 22 days, measured from 15 January to the depths of the most recent drop. It could bounce even higher than $71k, its press time price. The short liquidations overhead could be a magnet for the price, for both BTC and SHIB.
This could take Shiba Inu all the way up to the daily chart’s swing high at $0.00001. However, this would be an unlikely scenario.
Traders’ call to action – Sell the bounce
The weekly Shiba Inu chart revealed a bearish structure since June 2025. The 1-day timeframe was bearish too. Therefore, traders can use a price bounce to the retracement levels and imbalances outlined overhead to sell the memecoin.
Final Thoughts
- Shiba Inu’s price action is likely to mirror Bitcoin’s in the coming days, since BTC dictates market sentiment.
- A price bounce to higher levels is possible later in February, but the bearish trend is likely to resume thereafter.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
