Dog-themed cryptocurrency Shiba Inu (SHIB) has confirmed a death cross signal on its short-term charts, marking a bearish trend as the price continues to decline for the seventh consecutive day.
Shiba Inu’s price has been under selling pressure, falling for seven days in a row since July 27. This sustained sell-off has brought SHIB to levels that have triggered the market to pay close attention.
A death cross occurs when a short-term moving average crosses below a long-term moving average, often signaling a bearish trend. In the case of Shiba Inu, this pattern has emerged on the four-hour chart, where the 50-period moving average has crossed below the 200-period moving average.
The fact that this pattern has emerged on the four-hour chart for Shiba Inu suggests that the bearish momentum is gaining strength in the short term. Traders will likely look for clues from other indicators and price action to determine a possible reversal in the SHIB price.
Shiba Inu’s recent price action is not occurring in isolation. The broader cryptocurrency market is experiencing increased volatility, with many crypto assets facing selling pressure due to a combination of macroeconomic factors and shifts in investor sentiment.
What’s next for SHIB price?
At the time of writing, SHIB was down 4.22% in the last 24 hours to $0.000014 and down 16.42% weekly. If today closes in the red, Shiba Inu will mark its eighth consecutive day of losses.
On the upside, a decisive break above the daily moving averages of 50 and 200 at $0.000017 and $0.0000202, respectively, could signal the start of a bullish comeback, allowing SHIB to exit its current trading range. In the meantime, Shiba Inu faces a potential relief rally as bears take a breather.
On the other hand, if falls continue, SHIB’s next significant support range, as indicated by on-chain statistics, is between $0.000008 and $0.000014. In the intermediate term, support is envisaged at $0.0000126, where Shiba Inu’s price sharply rebounded in early July.
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Conclusion:
The bearish trend indicated by the death cross on Shiba Inu’s short-term chart highlights the challenges currently faced by this dog-themed cryptocurrency. As SHIB continues to experience downward pressure, traders and investors must closely monitor the price movements and key support levels to make informed decisions.
While the broader cryptocurrency market is also experiencing increased volatility, the unique factors affecting SHIB’s price require a tailored approach to analysis and trading strategies. As the market dynamics evolve, it will be interesting to see if Shiba Inu can overcome the current bearish trend and potentially stage a recovery.
For now, the focus remains on key levels of support and resistance, as well as external factors influencing market sentiment. As the cryptocurrency landscape continues to evolve, staying informed through platforms like DeFi Daily News will be crucial for navigating the complex world of digital assets.
