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Shiba Inu has struggled since the start of February, yet two major pace-setting moving averages have yet to interact on significant timeframes.
Notably, this is a rare event, as Shiba Inu typically experiences several crosses between the 200-period and 50-period moving averages (MA) in the past. Yet, none have happened 11 days into the month on major timeframes.
Key Points
- Shiba Inu has struggled since the start of February, yet two major pace-setting moving averages have yet to interact on significant timeframes.
- This is a rare event, as Shiba Inu has experienced several crosses between the 200-period and 50-period moving averages (MA) in the past.
- A lack of those crosses highlights the uncertainty dominant in the crypto market, as this major trend indicator has yet to surface.
- Shiba Inu is on course for its fourth straight downtrend day and its eighth so far this year.
- Data shows deleveraging as futures flows trend negatively.
Shiba Inu Price Struggles
It is glaring to all that Shiba Inu, the second-largest meme coin by market cap, is struggling to find its footing. The token is on course for its fourth straight downtrend day and its eighth so far this month.
The persistent correction has brought its 7-day performance to -12%, further extending its YTD decline to -14%. This sideways trend, however, is not relative to the token, as it has mirrored bearish moves seen in the broader crypto ecosystem.
For context, the crypto market cap has dropped from above $3 trillion earlier in the year to $2.34 trillion, as major assets chalk off a considerable amount of their valuation.
The pullback comes from whale sell-offs and a lack of new capital inflows as investors take a skeptical stand. This is evident in the Fear and Greed Index, which has dropped to 10, signaling extreme fear.
No MA Trend Indicator Yet
Meanwhile, despite sinking below $0.0000060, Shiba Inu’s key MA trend indicators have remained silent on significant timeframes. Neither have we seen a golden cross or a death cross since February, as $SHIB continues to wave off this key signal.
For the uninitiated, the interaction between the 200-period and 50-period MA produces these trend indications. When the former moves below the latter, it is a golden cross, while a converse situation prints a death cross.
So far, the 1-hour and higher timeframes have not recorded these interactions, which is surprisingly rare. Some might argue that the 200-period is already above the 50-period, and a death cross is not logically feasible.
Yet we have seen instances of a brief golden cross during market rebounds, followed by a death cross to confirm the next leg down. The only recorded death cross so far this month was on the 15-minute timeframe on February 5, which preceded the crash to $0.00000507 the next day.
What Does It Mean for Shiba Inu
Notably, this highlights the uncertainty dominant in the crypto market, as this major trend indicator has yet to surface. It also indicates that there has been no major bounce for $SHIB since February, as the 200 MA remains above the 50 MA.
Further data from Coinglass shows deleveraging as futures flows trend negatively. Specifically, outflows have outpaced inflows on all timeframes, as market traders slowly reduce risk appetite. A decline in open interest confirms this, with OI dropping from $74.4 million on February 1 to $66.2 million yesterday.