Shiba Inu Death Cross Hits SHIB Price, Another Zero Next?

Dog-themed cryptocurrency Shiba Inu has created a death cross on its three-hour chart. The short-term moving average (50 MA) has fallen below the long term MA, confirming a death cross, which is considered a bearish indication.

The appearance of a death cross comes as major cryptocurrencies extended their losses in a volatile week, with about $140 billion in market value erased.

Cryptocurrency traders saw over $1.7 billion in liquidations on Monday, triggering a sharp sell-off that sent Bitcoin and other digital assets dropping. Shiba Inu fell to a low of $0.00001179 on Monday before slightly rebounding.

However, the bears do not seem done with the move yet as Shiba Inu fell lower in the Thursday session, hitting an intraday low of $0.00001163. 

At press time, SHIB was down 2.55% in the last 24 hours to $0.00001193 and down 11% weekly.

Another zero next?

Shiba Inu has steadily declined since Sept. 13, when it reached a high of $0.00001484, reaching a low of $0.00001163 in the early Thursday session.

The good news is that Shiba Inu is approaching the key support of $0.0000116, where the price rebounded in early August.

If this is the scenario, the Shiba Inu price might rebound, avoiding adding a zero to its price tag. A decisive break above the moving averages might trigger a move toward $0.00001428 once more.

According to Glassnode cofounders Negentropic, the crypto market might be close to a reversal as shorts are starting to crowd the market.

On the other hand, major support is envisaged at $0.00001005, which has stopped Shiba Inu from adding a zero to its price tag since June.