Shiba Inu Death Cross: What It Means for SHIB’s Price and Support Levels

Sean Williams
SHIBA INU (SHIB)

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  • Shiba Inu’s death cross signals potential bearish momentum but doesn’t guarantee further declines.
  • Key support levels at $0.000008–$0.000009 could indicate a rebound if SHIB holds above them.
  • Traders are monitoring these critical levels as they determine whether SHIB’s price can recover or continue to drop.

Shiba Inu (SHIB) has recently made headlines with a major technical indicator flashing for the first time since its 2021 debut: the death cross. This bearish signal, formed when the 50-week moving average (MA) falls below the 200-week MA, has caught the attention of investors and traders alike. With Shiba Inu currently in a downtrend, the implications of this technical development are worth watching closely.

The Death Cross Explained: A Bearish Signal?

A death cross occurs when the short-term 50-week moving average dips below the longer-term 200-week moving average. This event is often interpreted as a sign of bearish momentum, indicating potential for further declines in price. For Shiba Inu, the 50-week MA stands at $0.000014045, just below the 200-week MA of $0.000014315. This alignment confirms the death cross pattern, but what does it mean for SHIB’s price action?

The significance of this pattern is not universally agreed upon. While some traders view it as a clear signal of a continued downtrend, others argue that the death cross is a lagging indicator that reflects past market conditions, not necessarily future price movements. In Shiba Inu’s case, the token has already suffered significant losses. It’s dropped by 10.37% in the last month alone and has seen a sharp 27.8% decline since August. However, the death cross doesn’t automatically guarantee further losses.

Key Support Levels: A Glimmer of Hope for SHIB?

Despite the bearish death cross, SHIB’s price is approaching critical support zones that could provide a lifeline for the token. Analysts have identified the $0.000008 to $0.000009 range as a key support zone. If SHIB can hold above this level, it might signal a potential rebound. Some traders are optimistic that a recovery could propel SHIB back toward a higher price, with targets as high as $0.0000773 in the long run.

However, there is a possibility that the token could dip further, with the next significant support level near $0.000006. If this lower range holds, it could provide enough buying power to spark a short-term rally. Regardless of which direction SHIB takes, traders are closely monitoring these levels for potential opportunities.

Also Read: Shiba Inu at Critical Support: Will $0.0000085 Hold or Lead to Deeper Losses?

What’s Next for Shiba Inu?

The formation of a death cross on Shiba Inu’s weekly chart makes this a critical time for both short-term traders and long-term holders. While the indicator may signal bearish momentum, it also highlights key support zones where price action could change course. The next few weeks will be crucial in determining whether SHIB can rebound or if further declines are on the horizon.

As always, investors should exercise caution, stay informed, and watch how SHIB behaves around these critical levels. With such a rare technical signal appearing on the chart, the market is at a pivotal moment.

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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