u.today
Dog-themed Shiba Inu (SHIB) is showing signs of recovery as the meme coin appears set to complete a golden cross formation on its hourly chart. Shiba Inu’s 9-day and 26-day moving averages are on the verge of converging, a signal of a possible rally in the making.
Can Shiba Inu golden cross setup potential upside?
Notably, a golden cross forms when the short-term moving average rises above the long-term moving average.
Currently, Shiba Inu is poised for a golden cross flip-over at $0.000007271, which could serve as a critical price point for SHIB.
As of press time, Shiba Inu was changing hands at $0.000007328, which represents a 0.38% increase in the last 24 hours.
This is a rebound from its earlier decline and bearish momentum. The meme coin has been facing intense pressure as volatility continues to sink the price further below the $0.00001 level.
At the start of December, Shiba Inu posted its first golden cross, sparking anticipation of further rallies. However, market volatility has prevented a sustained rebound, and this has caused some investors to stay away from transacting the meme coin.
CoinMarketCap data shows that there has been a 33.47% spike to $93.52 million within this period. If the increased engagement lingers, it could mean that the cautious attitude toward the bearish outlook is fading.
SHIB burn efforts fall short amid sell pressure
Shiba Inu’s attempt to stabilize the price of the meme coin has not yielded success. Notably, the ecosystem’s deflationary burn mechanism, which helps regulate circulating supply, remains insufficient to pull off a rebound.
Recently, many SHIB tokens have been sent to dead wallets to manage supply, but the burn activity has remained largely inconsistent.
Meanwhile, as U.Today reported, Shiba Inu appears to have larger challenges and might not sustain a bullish run. This is due to the massive sell-off that has plagued the meme coin, which has overwhelmed SHIB bulls.
Every rebound is met with a sell-off from investors looking to cut their losses on the ongoing bear market.
It might take a while, possibly sometime in 2026, for Shiba Inu to post a major comeback, unless a great shift like the current golden cross is able to spark a resurgence.