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Dog-themed cryptocurrency Shiba Inu (SHIB) has been trading down in the last 24 hours; at the time of writing, SHIB was down 0.21% daily to $0.00001538. Weekly, Shiba Inu was recording higher losses, down nearly 7%.
The price drop coincides with the appearance of a death cross on Shiba Inu's daily charts, which is the first major death cross in 2025. A death cross occurs when a shorter-term moving average, often the 50-day, dips below the longer-term 200-day moving average. Historically, this pattern has been viewed as a bearish sign, suggesting that downward momentum may persist.
Yuri MolchanThis time, the bearish technical indicator sends probable signals to traders and investors alike as the market faces uncertainty.
The cryptocurrency market has recently seen selling pressure due to macroeconomic concerns, with the Fed's cautious outlook on interest rates hurting speculative assets. Bitcoin, the first and largest cryptocurrency by market capitalization, has stalled under $100,000, while altcoins have faced even greater losses. Shiba Inu was not exempted from the bearish pressure, falling for four days straight from Feb. 15 to 18 before slightly rebounding.
Shiba Inu's price declined all through January and is down 18.64% so far in February.
Potential scenarios
Shiba Inu's last moving average crossover was a golden cross, the opposite of the death cross, which occurs when the 50-day SMA crosses above the longer-term 200-day moving average; this occurred in November 2024. Shiba Inu reached highs of $0.0000334 about a month later.
The most recent occurrence of a death cross before this time was in July 2024, which saw SHIB's price consolidate after hitting bottom lows of $0.000013. Following its consolidation, Shiba Inu reversed the trend and started rising.
If the current scenario plays out with the emergence of the recent death cross, Shiba Inu might seek to establish a price bottom and consolidate a while before making a major price move.
In the event of a price rebound, a decisive break above the daily moving averages 50 and 200 at $0.0000191 and $0.0000192 would be the first sign of strength for bulls and cause SHIB to escape its current range trading.
Dan Burgin
Vladislav Sopov