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Shiba Inu saw a golden cross signal on its short-term price chart, with the market now watching whether this might be a trap or a setup.
The 50 MA (moving average) on the two-hour chart crossed above the 200 MA, forming a "golden cross." The signal comes as Shiba Inu faces profit-taking after a significant rally in the past week. Shiba Inu price climbed for five days from June 11 to 15, before experiencing profit-taking.
At the time of writing, $SHIB was down 1.84% in the last 24 hours to $0.000004937, extending its drop into the second day since June 15.
The $SHIB price drop in the last 24 hours comes as the crypto market faces selling pressure ahead of today's Federal Open Market Committee (FOMC) interest-rate decision, which marks the first meeting under new Fed Chair Kevin Warsh. Investors are largely expecting that the Fed will hold interest rates steady.
Warsh's communication style will be watched closely by investors after eight years of listening for monetary policy clues from Jerome Powell, who closed out his tenure as Fed Chair in May.
Bull trap or setup?
The market traded in the red at press time, with activity slowing. Crypto futures volume fell 16.56% in 24 hours to $165 billion and open interest dropped 2.66% to $110 billion.
In this light, Shiba Inu trading volume across spot exchanges fell 45.28% in the last 24 hours to $53.9 million. The same scenario was seen in the derivatives market as volumes fell 59.03% in the same time frame to $65.64 million. Meanwhile, open interest rose 2.98% in the past day to $35.39 million, according to CoinGlass data.
The market is at an inflection point as a major altcoin indicator flashes its most bearish signal in years.
According to CryptoQuant, altcoin sell pressure just hit a five-year extreme, following 15 months of continuous net selling on spot exchanges.