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.
Cryptocurrency prices have brought little to no joy in recent days, and the popular meme coin Shiba Inu (SHIB) is no exception. Losing nearly 20% since its January high of $0.000025 is painful to say the least, but as the price chart and the formations on it for SHIB show, this could be just the beginning of misfortune for the popular meme cryptocurrency.
The first thing to note is the death cross that has formed on the 12-hour price chart of the Shiba Inu token. The death cross is a pattern where two moving averages cross, but the smaller one is falling and the larger one is rising. In our case, these two moving averages are the 50-day and 200-day, which are popular on the cryptocurrency market.
Arman ShirinyanAfter the ominous pattern appeared, the price of SHIB immediately continued to fall, losing over 11% in just the next day and a half. At the moment, the meme coin's price action is more reminiscent of a falling knife than something that a sober investor would want to put money into.
Trading at $0.00002, SHIB is literally on the verge of losing its most important psychological and technical price point. If it breaks down, the next stop could be $0.00001857, a further 7.33% lower.
Two paths for Shiba Inu (SHIB)
Thus, there are really two scenarios for SHIB, and neither of them can be considered positive in the short term. In the first case, we see the Shiba Inu token maintaining current levels, with neither bears nor bulls deciding the winner.
Yuri MolchanIn the second scenario, buyers will not enter trading until the price of SHIB reaches absurd "oversold" levels, which could be in the region of last year's sell-off.
However, if we try to find something positive, we can say that the death cross was formed in a lower time frame, so it will not last long enough.
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.
Denys Serhiichuk
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov