thecryptobasic.com
Shiba Inu has experienced its first golden cross for the month of December, building momentum for a decisive move to greater heights.
Beyond the recent dip, momentum could be building for Shiba Inu, the second-largest meme coin by market cap. The prospect of a positive move builds for the token as it records its first golden cross for December early in the month.
Golden Cross Flashes Recovery Sign
A golden cross signals bearish price exhaustion when a short-term moving average moves above a longer-term moving average. Typically, this usually happens between the 200 MA and the 50 MA.
A TradingView analysis shows this cross occurred on the 1-hour chart on December 4. At the time of writing, the gap between these moving averages has widened, with the 50 MA at $0.000008811 and the 200 MA below at $0.000008535.
Notably, market watchers view this indicator as a bullish signal, expecting a price recovery for the meme coin. Meanwhile, SHIB trades at $0.00000844 at the time of writing, down 3.65% over the past 24 hours.
Remarkably, this may have invalidated an earlier bearish indicator that had signaled a continued downtrend. The 23-period MA fell below the 50-period MA on the 4-hour chart earlier in the month, with analysis suggesting SHIB could drop to new lows.
How High Can Shiba Inu Go?
If this cross sparks a Shiba Inu recovery, its first target would be a retest of the $0.00000952 resistance level, an area that presented a roadblock two days ago. This move would require a 12% increase from the current market standing.
Other analysts predict further highs to delete one more zero. Notably, Shib Knight projected this move, citing renewed bullishness around the SHIB ecosystem. He noted that bulls are returning and will set the tone for the next exciting move.
Analyst Bitcoinsensus predicts an even bigger run to the December 2024 peak price of $0.00003343. He believes this would materialize if Shiba Inu breaks out from a falling wedge, as it recently showed strength within the structure.
Remarkably, bulls are becoming increasingly confident that Shiba Inu will recover this December. Market sentiment is turning positive following renewed monetary easing efforts by the US Fed. If Bitcoin experiences the move that many analysts expect, SHIB could finally break its historically bearish price action in December.