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Shiba Inu completed death cross signals on its short-term charts; notably, these were on the one-hour, two-hour and three-hour charts. The 50 MA across these price charts crossed below the 200 MA, indicating a death cross.
However, a surprising setup occurred on the market as prices rose across the board, including that of Shiba Inu. The broader crypto market reversed into the green as investors considered positive macro headlines.
About $325 million in crypto positions were liquidated on the crypto market, of which the majority were shorts.
A total of $274 million of bearish bets, or short positions, were unwound for cryptocurrencies in the last 24 hours, according to CoinGlass data. Long liquidations only came in at $51 million.
Shiba Inu bear trap?
At the time of writing, Shiba Inu was up nearly 5% in the last 24 hours to $0.000006053.
Many shorts were initiated in the market over the weekend, with the holidays adding to the volatility amid low liquidity. When the markets opened today, the switching of shorts and the covering of some positions caused a squeeze higher in illiquid conditions.
Shiba Inu consequently saw significant price surges on its short-term time frames, contrary to the death cross signals, as buying pressure increased. Following a dragonfly doji candlestick on the daily chart, the Shiba Inu price went higher.
A dragonfly doji is a bullish reversal candlestick pattern, often seen at the bottom of a downtrend, signaling potential upward price movement. In this light, Shiba Inu rose higher above the daily MA 50 to $0.0000059, reaching an intraday high of $0.0000061.
For weeks, the crypto market has been unable to shake consistent downward pressure since a sell-off in October. The Fear and Greed Index sits at 9, deep in extreme fear territory, where it has stayed between 8 and 14 for over a month, indicating that caution still remains on the market.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
