Shiba Inu (SHIB), the popular dog-themed cryptocurrency, has been under heavy selling pressure for the past week, with its price declining for seven consecutive days. This downturn coincides with the emergence of a “death cross” on its short-term charts, a technical indicator often interpreted as a bearish signal.
The death cross pattern forms when a short-term moving average crosses below a long-term moving average. In Shiba Inu’s case, the 50-period moving average dipped below the 200-period moving average on the four-hour chart, suggesting a potential shift in momentum towards a downtrend. This technical indicator has garnered attention from traders, who are now closely monitoring SHIB’s price action for further clues.
The recent decline is not unique to Shiba Inu. The broader cryptocurrency market has been experiencing heightened volatility, with many digital assets facing similar selling pressure. A confluence of factors, including macroeconomic concerns and shifting investor sentiment, is believed to be behind this market-wide weakness.
Looking Ahead for SHIB
At the time of writing (August 4, 2024), SHIB has fallen by 4.22% in the past 24 hours and a significant 16.42% over the last week. If the price closes in the red today, it will mark the eighth consecutive day of losses for Shiba Inu.
Possible Paths for SHIB Price
There are two potential scenarios for SHIB’s price movement in the near future.
- Upward Correction: A decisive break above the key resistance levels of $0.000017 (50-day moving average) and $0.0000202 (200-day moving average) could signal a potential reversal in the downtrend. This would allow SHIB to escape its current trading range and potentially embark on a bullish comeback. Additionally, a temporary “relief rally” might occur in the short term as selling pressure eases.
- Continued Downturn: Conversely, if the selling pressure persists and prices continue to fall, SHIB could potentially reach its next support zone between $0.000008 and $0.000014, based on on-chain data analysis. In a more bearish scenario, a further drop could see support kick in at $0.0000126, a level where Shiba Inu experienced a price rebound in early July.
Investor Takeaway
The recent death cross and ongoing sell-off signal potential challenges for Shiba Inu in the short term. However, the cryptocurrency market is known for its volatility, and unexpected price movements are always a possibility. Investors and traders should conduct their own research, consider various technical and fundamental indicators, and exercise caution before making any investment decisions related to SHIB.