Death Cross on SHIB: A Bearish Signal to Watch
Shiba Inu has confirmed a Death Cross on the 2-hour timeframe, with the SMA 200 crossing above the SMA 50, a historically bearish technical signal. The price is now trading below $0.0000060, reflecting a loss of short-term momentum and a progressive dominance of sellers in the chart structure.
This type of configuration is often interpreted as a prelude to a deeper correction or a phase of prolonged consolidation. However, on a short timeframe, the Death Cross can also act as a lagging indicator, appearing after a large portion of the bearish movement. The market therefore remains divided between continued decline and simple excess pessimism.
The $0.00000590 zone now constitutes the key support. A clean break with high volume would strengthen the scenario for extension toward $0.00000575, or even $0.00000500. Conversely, holding above this level could offer a technical bounce, although the risk of a dead cat bounce would remain present without recovery above the moving averages.
Possible Scenarios: Crash or Technical Bounce?
The bearish scenario remains favored as long as SHIB stays below its moving averages. An H4 or daily close below support would reinforce selling pressure and could trigger a wave of liquidations, amplifying short-term volatility.
The bullish scenario would require a return above $0.00000650, the first step toward reclaiming resistance located around $0.00000733. Such a move would assume renewed bullish momentum as well as a more favorable context in the crypto market.
In this uncertain context, the buy the dip strategy remains speculative. The risk/reward ratio may seem attractive for bold investors, but the technical structure remains fragile. The next candle closes and the evolution of trading volumes will be decisive in validating SHIB’s direction.
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