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Dog-themed Shiba Inu (SHIB) has registered a significant 3% increase in price within the last 24 hours. This has seen the meme coin trade at $0.00001339 at the time of this writing, according to data from CoinMarketCap.
Death cross's bearish impact on SHIB
Despite this uptick, SHIB investors remain concerned about the token's future trajectory. SHIB has been in a death cross since last month, and market participants have expressed concern over its performance in the broader cryptocurrency market.
Godfrey BenjaminFor context, a death cross occurs when the 50-day Moving Average falls below the 200-day Moving Average. This metric indicates a fall in the price of an asset. SHIB has suffered this decline, and the current 3% surge has not done much to clear it off this bearish zone.
Generally, a death cross signals bearish pressure. However, SHIB’s ability to register an uptick amid wild volatility raises market participants' anticipation of a possible rally out of the death cross zone.
Analysts say ecosystem support remains crucial for this to happen. For instance, trading volume has dropped by 26.07% to $206.24 million within the last 24 hours, signaling investors' reduced market activity.
Market experts say that for SHIB to witness a rally that could clear it off the zone, the trading volume must increase while maintaining a higher burn rate to trigger sentiment and sustain price rallies.
Ecosystem trend to watch
Meanwhile, according to data from Shibburn, the Shiba Inu ecosystem recently saw the incineration of 20 million SHIB tokens within minutes as part of a deflationary move to keep prices stable. An anonymous whale single-handedly sent over 12 million SHIB to dead wallets.
While the move is commendable, analysts have called for consistency to support SHIB’s quest for higher price levels. Stakeholders backing the token remain optimistic thqt it might chart a rally drawing on the current outlook.
Dan Burgin
Vladislav Sopov