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Shiba Inu (SHIB) meme coin has just entered a zone that's usually enough to make even the most casual meme coin followers nervous. On the daily chart, the 23-day moving average has now slipped under the 50-day line, a formation that is colloquially known as the "death cross."
It's not uncommon, but it often has a reputation for signaling that a rally has run its course and that selling pressure could take over, unless market momentum switches quickly.
The crossover comes after a stretch where SHIB tried to build on its July recovery, only to find resistance just above $0.000015. Since then, the price has had a hard time keeping up, dropping back under the 200-day moving average and settling into a sort of sideways pattern where neither side is making a strong move.
The coin is still stuck between two levels — resistance at $0.00001698 and support at $0.00001107. This has been the case for weeks, with neither level giving way.
Scenarios
If the SHIB price drops below $0.000012, it will probably make the market more bearish, since that zone has already been tested a few times this summer. The path to $0.00001107 might become more likely with this move, and if the price drops through that floor, we could see even deeper retracements.
In contrast, there's a chance that if SHIB can get past the moving averages and rise above $0.000014, the technical outlook might get a bit more favorable, allowing for a reexamination of the swing highs from July.
For now, the death cross doesn't seem like a final judgment, but more like a cautionary sign. It shows that SHIB's recovery is slowing down and it is pretty fragile. This is especially true when you look at other big names like Bitcoin and Ethereum, which are also stuck in indecisive ranges.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team