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Shiba Inu recently created a death cross signal on its hourly chart, which appears when the short-term moving average falls below the long term MA.
Early Thursday, Shiba Inu had formed a golden cross on its hourly chart, as reported by U.Today, but a few hours later, the SHIB price reversed, with a death cross following on the hourly chart.
The emergence of a death cross was not farfetched as the market saw short-term selling pressure ahead of the jobs data release on Thursday, with the Shiba Inu price likewise dropping.
The surprising twist remains that, while Shiba Inu fell to a low of $0.000012 —which coincided with the death cross emergence — the price sharply rose afterward, invalidating the signal.
A death cross remains a bearish indication, but this particular signal appeared when the price was relatively oversold, stunning bears, with Shiba Inu sharply rebounding after.
What comes next?
At press time, Shiba Inu was trading up 2.28% in the last 24 hours to $0.0000124, in line with the broader crypto market rise following a weak jobs data report.
According to a Bureau of Labor Statistics report released Friday, jobs creation saw a slowdown in August, adding to recent signs of labor market weakening, likely keeping the Federal Reserve on track for a widely anticipated interest rate cut later this month.
Following a sharp drop to a low of $0.000012 on Thursday, Shiba Inu rebounded. The cryptocurrency posted a green candlestick in the early Friday session, reaching a high of $0.00001246 before somewhat retreating.
In the coming days, Shiba inu is poised for a major moving average crossover on its daily chart, which will be closely watched. Shiba Inu formed a golden cross on its daily chart, the first in August of this year.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team