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Shiba Inu (SHIB) Set for Death Cross, but Does It Really Matter?

Sun, 03/05/2023 - 10:38
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Arman Shirinyan
One of most feared signals could be around corner for Shiba Inu
Shiba Inu (SHIB) Set for Death Cross, but Does It Really Matter?
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Shiba Inu, the meme-based cryptocurrency that gained massive popularity in the wake of 2021's bull market, has been experiencing a significant downturn in its value recently. The asset is now trading below the 50-day moving average, and analysts predict that it could soon face a "death cross" on the charts.

The death cross is a technical analysis term used to describe the point at which the short-term moving average crosses below the long-term moving average, indicating a bearish trend. In the case of SHIB, the 50-day moving average has crossed below the longer 200-day EMA, leading to the formation of a death cross. However, not all analysts believe in the significance of death and golden crosses and firmly believe that they do not have any analytical value.

Shiba Inu TA
Source: TradingView

This trend is a cause for concern for SHIB investors, as it indicates that the asset's price could continue to decline in the near future. Currently, Shiba Inu is trading at a price level of $0.00001, which is the lowest it has been in 40 days.

The downward trend of SHIB can be attributed to a number of factors. Firstly, the broader cryptocurrency market has experienced a downturn in recent weeks, with many assets losing significant value. Additionally, the hype surrounding meme coins seems to be fading, leading to a decrease in demand for SHIB.

Despite the bearish outlook for SHIB, some analysts believe that the asset could rebound in the coming months. However, this would depend on a number of factors, including a resurgence in demand for meme coins and an overall recovery of the cryptocurrency market.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.