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Ethereum-based meme coin Shiba Inu (SHIB) continues to face pressure after an ominous technical signal appeared on its four-hour chart. Earlier this week, it experienced a "death cross," when its 23-day moving average crossed below the 200-day one. It triggered a quick 7% slide in price, adding to the already growing bearish sentiment in the meme coin space.
It iss not just an isolated event though, as a second, and more widely watched, death cross is approaching: the 50-period moving average is about to cross below the 200-period line.
For traders, this upcoming 50/200 death cross is a big deal, with it being a signal that the market is likely to continue its downtrend. For example, back in April, a similar setup led to an 18% drop over six days.
Right now, Shiba Inu is trading at around 0.00001330, down from the 0.00001440 range just a few days ago. The technical breakdown happened after the price could not get back above its short-term moving averages. Now they are all going down.
Unfortunately, this is not the last we have seen of this, and it is another hit for SHIB bulls. Ever since the mid-May high, they have been trying to keep up , but it is clear that overall sentiment has taken a hit in the short term. Unless market conditions change, SHIB might continue to struggle heading into early June.
Keeping a close eye on the pending 50/200 death cross is important for traders right now. Once confirmed, there is potential for increased downward pressure, which could lead to a retest of the lower levels observed earlier this year.
U.Today Editorial Team
Vladislav Sopov