Bearish Concerns Emerge as Shiba Inu Encounters Another Death Cross

Shiba Inu stunned investors over the weekend following the appearance of a death cross on its daily chart.

Notably, a death cross is a bearish indicator often interpreted as a sign of waning momentum and a potential downturn ahead.

It happens when the 50-day moving average drops below the 200-day MA. As observed over the weekend, Shiba Inu’s 50-day MA dropped below the 200-day MA on the daily chart.

However, this optimism faded quickly due to macroeconomic uncertainty and the bearish nature of September. Many consider September to be the weakest month for crypto, as the prices of major assets typically underperform. These concerns led to selling pressure, which muted the impact of the golden cross in August.

Despite this, Shiba Inu managed to climb towards $0.000013 on August 29 but failed to sustain the upward momentum as the broader market stalled.

Next Move

Amid the mixed technical signals, Shiba Inu’s next move remains a focal point for traders seeking clarity on its short-term direction.

Bulls may target $0.000014-$0.000016 if Shiba Inu breaks above the daily moving average. However, if bearish pressure persists, Shiba Inu could experience another downturn, similar to the one it experienced in the months following February, with $0.00001 likely acting as a critical support level.

Currently, Shiba Inu is trading at $0.00001251 with a 24-hour increase of 1.34% and a seven-day surge of 4.93%. Shiba Inu has rallied 2.75% since the start of the month, lifting its average September performance to 3.71%.

Its trading volume has surged by 39% over the past 24 hours to $143.94 million, signaling strong interest in the token.

Elsewhere, Shiba Inu’s burn rate has skyrocketed, increasing by 1,676% over the past 24 hours. This translates to the incineration of 1.24 million SHIB tokens across nine transactions.