Shiba Inu Just Completed Death Cross, How Much Deeper Can Derisking Go?

Dog-themed cryptocurrency Shiba Inu ($SHIB) is extending its drop over the weekend into the second day. At the time of writing, $SHIB was down 3.04% in the last 24 hours to $0.000005780 as the broader crypto saw fresh selling on Sunday.

CoinGlass data shows $361 million in total liquidations over the past 24 hours across 119,741 traders in the crypto market, with long liquidations accounting for $294 million, about 85% of the total. Short liquidations only amounted to $67.43 million. This shows how one-sided the positioning was, heading into the weekend with several traders expecting prices to increase.

Macro conditions continue to weigh on sentiment, with crypto markets trading cautiously following the Federal Reserve’s latest policy stance, wherein the central bank held interest rates steady.

Shiba Inu completes hourly death cross

Shiba Inu has just completed a death cross on its hourly time frame with the MA 50 declining below the MA 200 as $SHIB's price fell.

This comes on the heels of a golden cross, which appeared on the $SHIB hourly chart on Saturday as the crypto market showed subtle indications of a rebound.

However, the golden cross was quickly invalidated as the market fell on Sunday as investors considered macro concerns.

The ongoing market sell-off comes on top of a broader decline that started in early October, which has caused sentiment to decline enough to stop fresh rallies from gaining enough steam to achieve a sustained breakout.

In this light, caution remains in the market, with the Crypto Fear and Greed Index unable to exit the fear zone and is currently at 27, which is "fear," according to CoinMarketCap.

Short-term structure remains weak for Shiba Inu, with recent recovery attempts stalling below $0.000006. Immediate support is expected at $0.00000562 as $SHIB's price remains below prior support levels that have now turned into resistance.