SHIB Traders Turn Cautious as Outflows Keep Building Below Zero

• SHIB trades below mid-range Fibonacci, forcing bulls to defend support to avoid losses
• Ichimoku cloud caps rebounds, keeping SHIB in correction while sellers print lower highs
• Falling open interest and negative spot flows show leverage unwinding and weak demand

Shiba Inu (SHIB) has started to cool off after a strong 4-hour breakout rally, with price now retreating into a key support pocket. The latest pullback has placed SHIB back under pressure, as sellers force a series of lower highs and keep recovery attempts capped. 

At the time of writing, SHIB traded near $0.00000793, which sits below key mid-range Fibonacci levels. This positioning suggests the market has shifted into a cautious phase, where buyers must defend support quickly to avoid a deeper slide.

SHIB Slips Below Key Fibonacci Levels

Market watchers have pointed to SHIB’s rejection near the 1.0 Fibonacci extension around $0.00001008 as a turning point. Consequently, the rally lost momentum once price failed to hold near the swing high zone. 

Traders now view the Ichimoku cloud as a major overhead barrier, since it continues blocking rebounds on the 4-hour chart. Besides limiting upside, the cloud also reinforces the broader idea that SHIB remains in a correction phase.

If bulls attempt to regain control, analysts expect the first test near $0.00000806. Additionally, the $0.00000868 to $0.00000875 region stands out as a key rejection band. A clean 4-hour close above $0.00000868 could shift sentiment and reopen the path toward $0.00000883. Moreover, a stronger breakout could target $0.00000938 and eventually retest $0.00001008.

On the downside, traders have focused on $0.00000793 to $0.00000790 as the immediate support area. Hence, price behavior in this pocket may define the next 24 to 48 hours. A breakdown below $0.00000759 would likely increase downside pressure and expose $0.00000682. Significantly, that lower level marks the 0 Fibonacci zone, which traders often treat as a final support target.

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Momentum tools also show weakening conviction from buyers. The DMI trend strength has faded, and bulls have not printed strong follow-through candles.

Open Interest and Spot Flows Stay Defensive

Derivatives data has also reflected caution. SHIB open interest once surged above $500 million during a peak speculation cycle. However, leverage has since unwound and now sits near $88.55 million. That decline suggests traders have reduced risk exposure.

Spot flows have added to the cautious outlook. Additionally, netflows have stayed mostly negative, with outflows dominating recent sessions. The latest reading near -$609.7K on Jan. 20 shows sellers still control the tape. Consequently, SHIB may need a stronger accumulation wave before any sustained rebound develops.

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Technical Outlook for Shiba Inu Price

Key levels remain clearly defined as Shiba Inu trades within a tightening structure. 

On the upside, $0.00000806 stands as the first reclaim zone, followed by $0.00000868–$0.00000875, where sellers previously forced strong rejections. A sustained move above this area could open upside extensions toward $0.00000883 and $0.00000938, with $0.00001008 marking the prior swing high and major breakout level.

On the downside, immediate support rests near $0.00000793–$0.00000790. A failure to hold this pocket would likely expose $0.00000759, a critical Fibonacci level that defines short-term risk. Below that, $0.00000682 emerges as the main downside target if selling pressure accelerates.

From a structure perspective, SHIB continues to form lower highs after topping near the 1.0 Fibonacci extension. The Ichimoku cloud overhead reinforces resistance, while momentum indicators suggest trend strength remains weak. Open interest contraction and persistent spot outflows further confirm cautious positioning among traders.

Will Shiba Inu Go Up?

SHIB’s near-term outlook depends on whether buyers can reclaim the $0.00000806–$0.00000868 range with convincing volume. A successful reclaim would shift momentum toward a broader recovery phase.

However, failure to defend $0.00000759 would likely keep SHIB under pressure and extend the pullback. For now, SHIB remains at a pivotal inflection zone, where volatility expansion appears increasingly likely.

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