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Shiba Inu saw a surprising golden cross signal on its hourly chart, with the timing attracting interest in the market.
Shiba Inu fell for two straight days earlier in the week as inflation worries that have fed bets on higher interest rates helped drag crypto and gold down.
The market, however, saw a rebound following the consumer price index reading, which came in as expected. The consumer price index (CPI) rose at a seasonally adjusted 0.5% for the month, putting the annual inflation rate at 4.2%, the Bureau of Labor Statistics reported Wednesday.
On Thursday, investors digested a higher-than-expected rise in May's producer price index, a key indicator of wholesale inflation. The index was up a seasonally-adjusted 1.1% for the month, pushing the annual rate to 6.5%, as per the Bureau of Labor Statistics data reading.
Shiba Inu golden cross faces immediate test
Shiba Inu rebounded from Wednesday's low of $0.00000455, with bulls lifting its price early Friday to an intraday high of $0.00000489.
This short-term price increase has produced a "golden cross" signal on the 1-hour chart, with the 50 MA crossing above the 200 MA; however, the broader trend remains weak.
Shiba Inu remains locked in a downtrend which took its price to a multi-year low of $0.00000431 on June 6. Consequently, Shiba Inu's price slightly rebounded as momentum indicators fell to deeply oversold levels, but the price remains under pressure. Derivatives positioning and funding rates in the market point to growing bearish sentiment, with traders staying on the sidelines.
The current relief rally will face its first major test at the daily MA 50 at $0.00000573 ahead of $0.0000066, which is the daily MA 200.
Shiba Inu received positive news this week: Mercari, one of Japan's major marketplaces, has added SHIB to its cryptocurrency lineup, allowing its 23 million monthly users to access the token directly.
Dan Burgin
U.Today Editorial Team
