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Shiba Inu (SHIB) has been under selling pressure in the last 24 hours, as has the cryptocurrency market. A bearish technical pattern known as a "death cross" has recently emerged on Shiba Inu's hourly charts, signaling potential further declines amid the ongoing market sell-off.
A death cross happens when a short-term moving average crosses below a long-term moving average. For Shiba Inu, the 50-hour moving average has crossed below the 200-hour moving average, indicating a "death cross."
The emergence of this signal comes at a time when the broader cryptocurrency market is facing profit-taking. The volatility has wiped out leveraged crypto trading positions, liquidating about $627 million in derivatives across various digital assets in the last 24 hours, according to CoinGlass data. Long positions with the expectation of price increases worth over $463 million were liquidated in this time frame.
What's next for SHIB?
Shiba Inu, which saw significant gains in the past week, has been hit hard by the market's recent bearishness. At the time of writing, SHIB was down 6.46% in the last 24 hours to $0.00002 and 7.10% weekly.
Shiba Inu began to decline on Jan. 18, when bulls hit resistance at $0.00002497. From this date, Shiba Inu will mark three out of four days in losses if today's session closes in red. On Jan. 20, bulls attempted to resuscitate SHIB prices, but they were stopped at highs of $0.000022 before bears stepped in.
Tomiwabold OlajideWhile the death cross on Shiba Inu's hourly chart might suggest that bearish momentum could be gaining strength in the short term, it is important to note that the death cross is a lagging indicator and might trap traders on the wrong side of the market. Most of the selling may have occurred before the crossover, and the price might be ready for a relief rally.
Traders will watch further price action and other technical indicators to gauge the potential for a continued downtrend or a possible reversal. In this case, a decisive break above $0.000019 and $0.000025 would determine Shiba Inu's next price direction and cause it to exit its current range trading.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Arman Shirinyan
Alex Dovbnya
Dan Burgin
Vladislav Sopov