Shiba Inu Price Prediction: Is the Death Cross a Sign of Further Declines?

Shiba Inu Price- What Does the Death Cross Signal for Shiba Inu Price?

Shiba Inu Price– Shiba Inu (SHIB) has been experiencing significant selling pressure over the past 24 hours, mirroring the broader trend across the cryptocurrency market. A bearish technical pattern, known as a “death cross,” has recently emerged on SHIB’s hourly charts, raising concerns about further potential declines amid the ongoing market sell-off.

What is a Death Cross?

A death cross occurs when a short-term moving average crosses below a long-term moving average, signaling a potential shift toward bearish momentum. For Shiba Inu, this pattern has materialized as the 50-hour moving average has dropped below the 200-hour moving average, officially marking the appearance of a death cross.

Market Context: Broader Cryptocurrency Decline

The timing of this signal coincides with a broader decline in the cryptocurrency market, which is currently facing substantial profit-taking activity. According to data from CoinGlass, leveraged crypto positions have been heavily impacted, with around $627 million in derivatives being liquidated across various digital assets in the past 24 hours. Notably, long positions betting on price increases, valued at over $463 million, were also liquidated during this period.

What Does This Mean for SHIB Investors?

While the death cross indicates a potential for continued downward price movement, it is important to note that technical indicators like this are not definitive predictions. The broader market dynamics and the liquidation of leveraged positions could further impact the direction of SHIB and other digital assets.

Investors should remain cautious and consider the broader market trends before making decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.