Shiba Inu (SHIB) traders have been eyeing a potential golden cross, a bullish technical indicator, with hopes for a price surge. However, recent market developments suggest they may need to wait longer before seeing a significant upward movement. The golden cross—a point where a 50-day simple moving average (SMA) crosses a long-term 100-day or 200-day SMA from below—is seen as a bullish cue in technical analysis. While signs of this pattern emerged in late October, SHIB’s path to this coveted formation appears to have hit some bumps.
The Delay In SHIB’s Golden Cross Formation
In October, the golden cross looked almost certain for SHIB, with the 50-day SMA on the verge of crossing the 200-day SMA. However, recent price action has introduced new challenges. The primary culprit appears to be volatility stemming from U.S. election uncertainties, which has dampened market sentiment and stalled SHIB’s recovery momentum.
After dipping below its critical long-term support, SHIB’s price found a temporary stop at the 50-day SMA. This halt in decline initially raised hopes that the golden cross would materialize, fueling bullish sentiment among traders. Yet, as SHIB encountered resistance around both the trendline and the 200-day SMA, optimism faded. A price rejection at this juncture pushed SHIB down by about 12%, marking a significant setback and invalidating any immediate chances of a golden cross.
For SHIB traders, this price rejection below the 50-day SMA signals a short-term bearish outlook, potentially keeping the coin on a downward trajectory until it can find renewed support. Key levels to watch in the coming days are at $0.000015 and $0.000014. A rebound from these points could reopen the path to a golden cross, although it would still require a sustained rally to regain lost ground and cross the 50-day and 200-day SMAs.
Market Sentiment – A Mixed Picture
Despite the downturn, market sentiment among major traders remains cautiously optimistic. Data from Binance shows a dominance of long positions among top traders, who held a 60% bullish stance before it slightly decreased to 58%. This dip in long positions aligns with broader de-risking ahead of the U.S. elections, indicating some hesitancy among traders despite an overall bullish outlook.
Open Interest (OI) in SHIB also saw a decline, dropping from $57 million to $38 million over the past few days. This drop reflects traders’ cautious stance, possibly hedging against potential election-related volatility. Nonetheless, SHIB’s recent sell-off hasn’t deterred all buyers; large funds are still showing interest, evident in the steady “buy the dip” trend amid SHIB’s latest price plunge.
The Road Ahead for SHIB
Although the golden cross has been delayed, SHIB’s future remains promising. The burn rate—another metric SHIB investors monitor—has been robust, removing tokens from circulation, which could support price recovery if demand picks up.
In conclusion, while SHIB traders may have to wait longer for the bullish catalyst of a golden cross, strong buy-the-dip sentiment and steady support from major players suggest that the token is far from losing its appeal. As the U.S. election jitters settle, SHIB’s next steps will largely depend on how well it can maintain key support levels and whether it can break past its 50-day and 200-day SMAs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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