Shiba Inu confirms a death cross signal, indicating a bearish trend amidst a major sell-off. Technical analysis explores potential future price movements and key support levels.
Points
- Shiba Inu confirms a death cross signal on its short-term charts.
- The price has been under selling pressure for seven consecutive days.
- Key support levels are identified, with potential for a relief rally or further decline.
- Broader market volatility impacts Shiba Inu’s price movements.
Dog-themed cryptocurrency Shiba Inu （SHIB） has confirmed a death cross signal on its short-term charts, marking a bearish trend as the price continues to decline for the seventh consecutive day. This sustained sell-off has brought SHIB to levels that have triggered the market to pay close attention.
Death Cross Signal
A death cross occurs when a short-term moving average crosses below a long-term moving average, often signaling a bearish trend. In the case of Shiba Inu, this pattern has emerged on the four-hour chart, where the 50-period moving average has crossed below the 200-period moving average. This suggests that the bearish momentum is gaining strength in the short term.
Recent Price Action
Shiba Inu’s price has been under selling pressure, falling for seven days in a row since July 27. This sustained decline has brought SHIB to levels that have triggered significant attention from traders and investors. At the time of writing, SHIB was down 4.22% in the last 24 hours to $0.000014 and down 16.42% weekly.
Key Support Levels
If the selling pressure continues, SHIB’s next significant support range, as indicated by on-chain statistics, is between $0.000008 and $0.000014. In the intermediate term, support is envisaged at $0.0000126, where Shiba Inu’s price sharply rebounded in early July.
On the upside, a decisive break above the daily moving averages of 50 and 200 at $0.000017 and $0.0000202, respectively, could signal the start of a bullish comeback, allowing SHIB to exit its current trading range. In the meantime, Shiba Inu faces a potential relief rally as bears take a breather.
Broader Market Volatility
Shiba Inu’s recent price action is not occurring in isolation. The broader cryptocurrency market is experiencing increased volatility, with many crypto assets facing selling pressure due to a combination of macroeconomic factors and shifts in investor sentiment. This broader market context is essential to understanding SHIB’s price movements and potential future trends.
Conclusion
Shiba Inu’s confirmation of a death cross signal amid a major sell-off indicates a bearish trend in the short term. With key support levels identified and potential for a relief rally, traders and investors should closely monitor SHIB’s price action and broader market conditions. Understanding these dynamics will be crucial for navigating the current market volatility and making informed trading decisions.
Explanation
- Death Cross: The crossing of the 50-period moving average below the 200-period moving average indicates a bearish trend.
- Price Decline: Shiba Inu has been under selling pressure for seven consecutive days, highlighting a sustained decline.
- Support Levels: Key support ranges between $0.000008 and $0.000014, with potential bullish signals above daily moving averages.
- Market Volatility: Broader market conditions contribute to SHIB’s price movements, emphasizing the need for cautious trading.