After a timid rebound, Shiba Inu (SHIB) falters once more. Technical indicators flash red, sparking fears of a further drop. Yet, some signals hint at a potential surprise. Is it still worth believing in the iconic memecoin?
Shiba Inu (SHIB) is currently going through a tough time, with a decrease of over 21% in the last 30 days. Investors are closely watching the movements of technical indicators. A particularly worrisome scenario is emerging: the threat of a “death cross“.
This pattern occurs when the short-term moving average crosses below the long-term moving average, typically indicating a bearish trend reversal. If this pattern is confirmed, the SHIB price could then plunge further, testing crucial support levels.
Nevertheless, the technical signals remain mixed. The Relative Strength Index (RSI) has plummeted into a neutral zone. Also, the BBTrend, a trend strength indicator, has started a positive rebound after a significant decline. This divergence illustrates the current uncertainty in the SHIB market.
An analysis of the Shiba Inu’s Exponential Moving Averages (EMA) reveals worrisome signs of weakness. The convergence of the short-term EMA towards the long-term EMA indicates the imminent formation of a death cross.
This technical pattern, often seen as a warning signal, could trigger a new wave of selling if buyers fail to regain control. In this scenario, the SHIB price could then collapse towards the support at $0.0000123, or even fall further towards $0.0000118.
However, all hope is not lost for SHIB holders. If the token manages to regain ground before the confirmation of this death cross, a bullish momentum could emerge. This would involve testing the resistance level at $0.0000134. Beyond that, the next targets would be at $0.0000147 and $0.0000160.
As Shiba Inu stands at a crossroads, investors are advised to remain vigilant regarding the evolving situation. The imminent formation of a death cross on the EMAs is a major warning signal that could trigger a new wave of selling if buyers fail to regain control.
However, the technical indicators are showing mixed signals, reflecting the current uncertainty in the SHIB market. In this context, it will be essential to closely monitor the upcoming developments and be prepared to seize any opportunities that may arise, whether in terms of profit-taking or strengthening positions. If you wish to invest through a reliable exchange, we recommend the Bitget platform.
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