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Shiba Inu could still see the appearance of a golden cross on its chart despite the recent correction, fueled by the WSJ report about Tether.
The broader crypto market witnessed a correction over the weekend following reports that the U.S. government is investigating Tether, the issuer of USD-pegged stablecoin USDT, for possible violation of anti-money laundering rules.
Despite Tether CEO Paolo Andoino issuing a rebuttal almost immediately, it did not prevent assets like Shiba Inu from witnessing massive declines. Specifically, Shiba Inu plunged from $0.00001740 to $0.00001646 in the evening hours. The asset has since moved above the $0.0000165 price mark.
Shiba Inu Golden Cross Projection Still Valid
Consequently, several enthusiasts speculated that SHIB’s recent turbulence might have nullified the projection of a golden cross on the Shiba Inu chart.
This pattern occurs when a short-term moving average (MA) records a cross above a long-term one. Its appearance on an asset’s chart is usually considered a bullish signal, indicating a potential price spike.
Despite Shiba Inu’s recent turbulence, the projection relating to the formation of a golden cross on its chart remains valid. At the current price of $0.00001684, Shiba Inu is still within the 50-day MA, one of the components of the golden cross.
Will Shiba Inu Continue Its Rally Next Month?
As the effect of the Tether report on crypto prices declines, the major question remains whether Shiba Inu will continue its October rally in November. Data from CryptoRank indicates that November is not a favorable month for Shiba Inu.
Since inception, Shiba Inu has witnessed three Novembers, from 2021 to 2023. In particular, the asset ended November 2021 with a double-digit loss of 29.6%, followed by another 24.93% decline by November 2022.
The only time November favored Shiba Inu was in 2023 when SHIB saw a gain of 6.62%. Shiba Inu boasts an average decline of 15.9% in November, indicating that SHIB might be poised for a double-digit loss next month.
However, recent developments, such as the validity of the golden cross projection and increased Shibarium activity, could turn the tide in favor of Shiba Inu.
Shibarium Activity Surge
Last week, Shibarium activity spiked tremendously after the network’s active accounts increased by 1,557% to 26,237 on October 23. This led to a remarkable surge in Shibarium’s transaction volume to 3.24 million. The figure rose to 4.76 million on October 26 and has plummeted to about 700,000 at press time.
Despite this fall, Shibarium’s current transaction volume is still above what was witnessed earlier this month and in previous months. The surging transaction volume could strengthen investors’ confidence in Shiba Inu, potentially boosting the demand for its ecosystem tokens, including SHIB.