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It did not take long for popular meme cryptocurrency Shiba Inu (SHIB) to get hit with its first death cross in December, per a TradingView price chart, as just today this ominous pattern emerged on a four-hour chart. With a 23-day moving average crossing down the 50-day price curve, the Shiba Inu coin got another confirmation of bearish bias, which reigned over its chart for the last couple of days, weeks and, to be honest, months.
The question that should bother all SHIB holders right now is whether they will have another opportunity to get rid of their meme coins before what the death cross usually precedes — a downward move — or if the fall is imminent from the current price point.
It may sound twisted, but the fact is that the death cross can often mark the bottom for the asset on whose chart it appeared.
If that is the case, the price of SHIB may see a recovery to the mid-$0.0000080s zone, where both moving averages are currently stretching.
Conversely, considering the worst is only ahead, the Shiba Inu coin may see its quotes dragged down to as low as the mid-$0.0000070 zone, where previously the meme coin found a bottom amid a general crypto market bloodbath worth billions in liquidations.
Bottom line for SHIB
Either way, the risk-to-reward ratio for Shiba Inu (SHIB) right now is awful, and it would be fair to say that it is in a sort of price limbo right now, stuck in the middle of nowhere.
One thing is for sure: the start of December for SHIB turned out ugly, and only Santa and his rally may be able to make a great Christmas surprise out of this mess for holders of the meme coin.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team