Shiba Inu Sets Up Never Before Seen Signal on Weekly Chart: Details

Shiba Inu is eyeing a never-before-seen setup on its weekly chart as the weekly moving averages (MA) 50 and 200 draw closer.

This is significant as the drawing closer of the moving averages with an imminent convergence might highlight a potential death cross or, on the contrary, a golden cross.

This would be the first time on record such a technical pattern would appear on Shiba Inu's weekly chart.

A death cross would occur in the coming weeks if Shiba Inu's 50-week MA crosses under its 200-week SMA, and a golden cross would appear in the reverse scenario.

A death cross on the weekly time frame makes for a cautious view of the short-term outlook and maintains the potential for a return. One could argue that the death cross timing might be right for bears as the market faces increased uncertainty.

A moving average-based death cross represents what happened in the past, with some still considering it a forward-looking indicator.

Some analysts, however, do not see the death cross as a reliable indicator because it is based on backward-looking moving averages and lags prices and has proved to be a contrary indicator in some cases.

A death cross on Shiba Inu's weekly chart might turn out to be a nonevent, indicating that the token is oversold after months of lackluster trading action.

SHIB declines amid market drop

Shiba Inu has entered its fourth day of dropping since Nov. 10, coinciding with a broader market sell-off.

A sharp liquidity crunch sent Bitcoin and altcoins plunging on Friday, triggering over $1.28 billion in liquidations, according to CoinGlass data.

Shiba Inu was not exempt, dropping to a low of $0.00000893 on Friday. At press time, SHIB was down 6.93% in the last 24 hours to $0.000009.

The altcoin market will be depending on whether Bitcoin can find its way out of danger and return above crucial support.