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The long-awaited golden cross on the price chart of Shiba Inu (SHIB) finally formed two days ago. However, the price of the popular meme-inspired cryptocurrency took a completely unexpected turn when, with the formation of this pattern, it plunged more than 16% over the next two days, going from a high of $0.00003 to $0.000023, where it found a local bottom and buyers' reaction.
Remember that the golden cross is the intersection of two moving averages - the higher and the lower time order. A classic example is the combination of the 200-day and 50-day moving averages, when the younger one crosses the older one to the upside, meaning that the price takes on an undervalued character and usually precedes periods of growth.
For example, in the case of the Shiba Inu token, the golden cross heralded a rise of more than 450% from December 2023 to March 2024.
On the other hand, over the past 10 days, the SHIB price has risen over 80%, and the movement of the past two days can be considered a correction, especially in light of today's CPI report, which may cause some short-term chaos on the markets.
From this point of view, the correction, which is probably due to risk aversion ahead of the important macroeconomic report, seems logical. With this in mind, it will be even more interesting to see how the golden cross on SHIB will play out when market participants are able to make investment decisions without such distractions.