Shiba Inu (SHIB) has recently shown resilience despite forming a death cross, a technical indicator typically signaling a bearish trend. However, its price has been recovering, raising speculation about whether SHIB has reached a bottom.
Key Highlights:
- Death Cross Formation: The 50-day moving average fell below the 200-day moving average, indicating potential downward momentum.
- Recent Price Recovery: SHIB has gained 2.22% in the last 24 hours, trading at $0.00001555.
- Market Influence: The recent market dip was triggered by the massive $1.5 billion Bybit hack.
- Resistance Levels to Watch: Key resistance at $0.00001821 and $0.00001926 could confirm an uptrend.
- Potential for Further Gains: Sustained bullish momentum might push SHIB towards $0.00003 or higher.
Death Cross Signals Bearish Momentum
Recently, Shiba Inu experienced a death cross—a bearish technical pattern that occurs when the short-term 50-day simple moving average (SMA) crosses below the long-term 200-day SMA. Historically, this pattern suggests increasing selling pressure and a possible downtrend.
Before this bearish indicator emerged, SHIB had already declined for four consecutive days. However, it has since rebounded, posting three green days out of the last four, signaling renewed buying interest.
Price Rebound Amid Market Turmoil
At the time of writing, SHIB is trading at $0.00001555, marking a 2.22% increase in the past 24 hours. This comes after reaching a local low of $0.000015 on February 19.
Read more Can Shiba Inu (SHIB) Reach $1? The Burn Strategy Explained
The recent market decline was partly driven by the $1.5 billion hack of Bybit, one of the largest cryptocurrency exchanges. This event caused widespread uncertainty, leading to a significant sell-off across the crypto market. On Friday, SHIB recorded a red daily candle in response to the hack, but it quickly recovered over the weekend.
Key Resistance Levels to Watch
For SHIB’s recovery to be validated as a sustained uptrend, it must break key resistance levels. The 50-day SMA is currently at $0.00001821, while the 200-day SMA is at $0.00001926. A breakout above these levels could confirm a bullish trend, potentially pushing the price towards $0.00003 or beyond.
However, if SHIB fails to maintain upward momentum, the market could see further consolidation before a decisive move.
Has SHIB Found Its Bottom?
Although the death cross initially suggested downside pressure, the recent recovery has sparked debates among traders. Some analysts argue that moving average crossovers are lagging indicators, meaning they often appear after the worst of the decline has already occurred.
If SHIB’s price continues to rise despite the bearish signal, it could indicate that the market has already absorbed the selling pressure and is preparing for a stronger rally. Additionally, a broader recovery in the crypto market could provide further tailwinds for SHIB in the short term.
Conclusion: Will SHIB Maintain Its Momentum?
Shiba Inu’s recent price action suggests growing bullish sentiment, despite the ominous death cross pattern. Traders are now closely watching whether the recovery can evolve into a sustained uptrend, or if further consolidation is needed before a decisive breakout.
If SHIB surpasses key resistance levels, it could see a significant rally toward $0.00003 or higher. However, failure to break through could result in sideways movement or renewed bearish pressure.
What’s Your Take on SHIB’s Future?
Do you think Shiba Inu will continue its upward momentum? Share your thoughts in the comments and stay updated with the latest crypto trends!
Important Notice: The content presented in this article is intended for informational purposes only and should not be interpreted as financial advice. Coinshibainu.com bears no responsibility for any investment decisions made relying on the information contained herein. It is highly recommended to consult with a qualified expert or financial advisor before making any investment decisions.
