The Shiba Inu (SHIB) token, a favorite among dog-themed cryptocurrencies, has been hit hard in the recent market downturn. Since July 28, SHIB’s price has dropped for eight consecutive days, marking its longest intraday losing streak ever.
This severe price collapse has confirmed a death cross on Shiba Inu’s short-term price chart. A death cross occurs when an asset’s short-term moving average falls below its long-term moving average, signaling a bearish trend. On SHIB’s 4-hour chart, the 50-day moving average has crossed below the 200-day moving average, highlighting this bearish sentiment.
The death cross indicates that SHIB could see further declines in the short term. However, positive updates from the ecosystem team and a shift in broader market sentiment could reverse this trend.
Potential Outcomes for Shiba Inu’s Price Action
Currently, Shiba Inu trades at $0.00001136, down 19.69% over the past 24 hours and 33.92% over the week. This decline has pushed SHIB below crucial support at $0.00001269. The next support level lies between $0.000008 and $0.000013, where 133.56 trillion SHIB tokens were purchased by 345,340 addresses, according to IntoTheBlock data.
If this support holds, SHIB could potentially rise above the daily moving averages of 50 and 200 at $0.000017 and $0.0000202, respectively. However, if this support fails, SHIB could experience further declines.
Shiba Inu is not alone in this downturn. The broader crypto market has faced intense selling pressure in recent weeks, leading to significant price declines. CoinMarketCap data shows that the global crypto market cap has dropped 16.59%, falling to $1.84 trillion. This massive downturn has been triggered by macroeconomic factors and a shift in investor sentiment.
Despite the bearish outlook, the crypto market remains volatile and unpredictable. Traders and investors should closely monitor market trends and updates from the Shiba Inu ecosystem to navigate this challenging period.
