thecryptobasic.com
Shiba Inu just recorded a death cross on the lower timeframe, raising further doubts about the possibility of its near-term price recovery.
This cross specifically occurred over the 2-hour $SHIB/USD chart, building on a similar event on the lower timeframes. If Shiba Inu continues its current momentum, it may be only a matter of time before the bearish indicator prints on higher timeframes, further strengthening the bearish narrative.
Key Points
- Shiba Inu just recorded a death cross on the lower timeframe, raising further doubts about the possibility of its near-term price recovery.
- On February 23, the 200 MA crossed above the 50 MA, suggesting fading momentum and a swing from bullish to bearish.
- The February 23 dip following the death cross saw Shiba Inu test the key support at $0.0000060.
- Currently at $0.00000592, it has shown resilience so far, and how far it holds the demand zone would determine its next course of action.
- A sustained hold would spark a rebound to higher resistance levels at $0.0000066, $0.0000072, and $0.0000078.
- Losing the $0.0000060 support would send $SHIB to lower levels, such as $0.0000057 and $0.0000050.
Shiba Inu Death Cross
Notably, the $SHIB death cross occurred between the 200-period SMA and the 50-period SMA, which represent long- and short-term indicators, respectively. On February 23, the 200 MA crossed above the 50 MA, suggesting fading momentum and a swing from bullish to bearish.
Meanwhile, this had earlier happened on the 1-hour timeframe on February 19. Such a progressive death cross is concerning, as it continues to confirm the bearish trend up the chart chain.
However, some argue it is a lagging market indicator, as it often reflects what is already happening in the market. Notably, the cross occurred just after $SHIB printed a large red candle on the 2-hour chart on Monday, where it corrected 4.2%.
Others still view the death cross not just as a reflection of developing price action but also as an indicator of subsequent price trends.
Correction Pushes $SHIB to Key Support
The February 23 dip following the death cross saw Shiba Inu test the key support at $0.0000060. The meme coin dropped to the area early Monday but rebounded from there to quickly reclaim $0.00000614.
That momentum did not last, as macro uncertainties weighed on the crypto sector, sending $SHIB back to the $0.0000060 support level. Currently at $0.00000592, it has shown resilience so far, and how far it holds the demand zone would determine its next course of action.
A sustained hold, as it did on February 12, would spark a rebound to higher resistance levels. The closest ones are $0.0000066, $0.0000072, and $0.0000078. Meanwhile, for a sustainable rally, $SHIB would need to break above major moving averages, as it is practically below all of them. Until then, any upward move would be seen as a relief pump rather than a trend reversal.
Losing the $0.0000060 support would send $SHIB to lower levels, such as $0.0000057 and $0.0000050. Buyers previously stepped in at these levels earlier, and analysts remain upbeat that counter-buying pressure will meet any dip to these supports.