Mega Death Cross Warning Looms Over Shiba Inu (SHIB) Cryptocurrency Potential Crash
The Shiba Inu (SHIB) cryptocurrency is approaching a significant turning point, as a "death cross" is imminent on its weekly chart. This technical indicator, which occurs when the 50-week moving average crosses below the 200-week moving average, is a strong bearish signal that could have a significant impact on SHIB's performance for the rest of the year[1].
For SHIB, this would be the first time it experiences such a setup on the weekly chart, marking a new phase in its market history and signaling caution for traders and investors[1]. Unlike most death crosses seen on shorter timeframes, a weekly death cross carries more weight because it reflects broader market sentiment over a longer timeframe[1].
Currently, SHIB is struggling to hold key support levels around $0.00001 and has failed to test the resistance formed by the moving averages, which now act as a strong barrier[1]. This suggests the price momentum is weak and under pressure. Previous death crosses on shorter timeframes, such as the 9-day EMA crossing below the 21-day EMA, have already triggered sell signals and price downtrends[3].
However, the ongoing token burns and efforts to reduce supply could serve as a counterbalance, potentially supporting price stability or a bullish reversal if the market sentiment shifts[2][4]. Such token burns are typically bullish as they create scarcity. However, so far the price has not reacted positively to these burns, indicating that other bearish factors might be dominating the market sentiment[4].
The rejection area at $0.00001330 has now become a firm resistance level. If the cross completes, it could be a game-changer for SHIB's long-term trajectory, potentially leading to a prolonged period of price weakness or consolidation ahead[1]. Investors should watch how SHIB price behaves around the death cross confirmation and key supports like $0.00001 to gauge whether a recovery or further decline is likely[1][3].
It is important to note that the death cross is a technical indicator and does not take into account fundamental factors such as market sentiment, adoption, or development[1]. Therefore, while it provides valuable information, it should be used in conjunction with other analysis tools and a thorough understanding of the market.
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[1] Data from TradingView and CoinMarketCap [2] Data from Shibburn.com [3] Data from CoinMetrics [4] Data from IntoTheBlock.com
- Although SHIB is experiencing a death cross, which is a strong bearish signal, the ongoing token burns and efforts to reduce supply could potentially support price stability or a bullish reversal if market sentiment shifts.
- The ongoing token burns, which typically create scarcity, might serve as a counterbalance, balancing the bearish impact of the pending death cross.
- The completion of the death cross could lead to a game-changer for SHIB's long-term trajectory, potentially causing a prolonged period of price weakness or consolidation ahead.
- Alongside the death cross, investors should also consider technical indicators from TradingView, CoinMarketCap, CoinMetrics, and IntoTheBlock.com, as well as fundamental factors like market sentiment, adoption, and development before making any investment decisions in Bitcoin, crypto, or Shiba Inu (SHIB).
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