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Shiba Inu (SHIB) is in the green days after posting a recent death cross, a technical indicator that typically signals bearish momentum. A death cross occurs when a shorter-term moving average, often the 50-day, dips below the longer-term 200-day moving average.
In the case of Shiba Inu, the daily SMA 50 has dropped beneath the daily SMA 200, confirming a death cross. Ahead of this bearish signal, Shiba Inu plummeted for four days at a stretch before slightly rebounding.
Tomiwabold OlajideAt the time of writing, SHIB was up 2.22% in the last 24 hours, trading at $0.00001555, extending its rebound from Feb. 19 lows of $0.000015. Taken from this date, Shiba Inu has marked three out of four days in green.
Friday's drop was driven by the market's reaction to an over $1.5 billion heist of the Bybit exchange, which analysts claim was the biggest crypto theft ever, with Shiba Inu posting a daily red candlestick. Shiba Inu rebounded in Saturday's trading session and was sustaining this rebound at press time.
Will SHIB rally higher?
Despite the current rebound, SHIB needs to breach major resistance levels to validate a bullish trend. In this scenario, the daily moving averages of 50 and 200, at $0.00001821 and $0.00001926, respectively, would be closely watched.
Arman ShirinyanIf this happens and momentum sustains, a rally toward $0.00003 or higher could be possible. However, failure to sustain the upward movement may lead to further consolidation.
While the death cross initially signaled bearish pressure, SHIB’s rebound is sending a different signal, sparking speculation on whether Shiba Inu has formed a price bottom. This is because moving average crossovers are considered lagging indicators as they might occur when the asset is already oversold and due for a rebound.
Traders will be watching closely to see if the current rebound can turn into a sustained rally in the coming days. An overall recovery in the crypto market would also help SHIB's price rise in the short run.
Dan Burgin
Vladislav Sopov