u.today
Shiba Inu ($SHIB) is in the green days after posting a recent death cross, a technical indicator that typically signals bearish momentum. A death cross occurs when a shorter-term moving average, often the 50-day, dips below the longer-term 200-day moving average.
In the case of Shiba Inu, the daily SMA 50 has dropped beneath the daily SMA 200, confirming a death cross. Ahead of this bearish signal, Shiba Inu plummeted for four days at a stretch before slightly rebounding.
At the time of writing, $SHIB was up 2.22% in the last 24 hours, trading at $0.00001555, extending its rebound from Feb. 19 lows of $0.000015. Taken from this date, Shiba Inu has marked three out of four days in green.
Friday's drop was driven by the market's reaction to an over $1.5 billion heist of the Bybit exchange, which analysts claim was the biggest crypto theft ever, with Shiba Inu posting a daily red candlestick. Shiba Inu rebounded in Saturday's trading session and was sustaining this rebound at press time.
Will $SHIB rally higher?
Despite the current rebound, $SHIB needs to breach major resistance levels to validate a bullish trend. In this scenario, the daily moving averages of 50 and 200, at $0.00001821 and $0.00001926, respectively, would be closely watched.
If this happens and momentum sustains, a rally toward $0.00003 or higher could be possible. However, failure to sustain the upward movement may lead to further consolidation.
While the death cross initially signaled bearish pressure, $SHIB’s rebound is sending a different signal, sparking speculation on whether Shiba Inu has formed a price bottom. This is because moving average crossovers are considered lagging indicators as they might occur when the asset is already oversold and due for a rebound.
Traders will be watching closely to see if the current rebound can turn into a sustained rally in the coming days. An overall recovery in the crypto market would also help $SHIB's price rise in the short run.