Shiba Inu (SHIB) is under pressure once again after a highly anticipated golden cross failed to deliver the expected bullish momentum. The token has dropped by more than five percent in recent trading sessions, despite forming a technical pattern that usually signals a trend reversal.
A golden cross occurs when a short-term moving average moves above a long-term one, often seen as a bullish indicator. In SHIB’s case, the 23-day moving average crossed over the 200-day average on the daily chart. While this pattern generally attracts buyers, the price action following the crossover has disappointed traders.
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SHIB briefly rallied toward the $0.000014 level but quickly lost momentum and reversed. It is currently trading around $0.00001296, slipping below the golden cross zone and raising fears of a failed breakout.
According to data from TradingView, support now sits at approximately $0.00001274, in line with the 23-day moving average. A break below this support could send SHIB lower, with the next key level to watch near $0.00001107.
Golden Cross Hype Fizzles as Price Action Turns Bearish
The excitement surrounding the golden cross has faded as SHIB struggles to hold gains. Traders are showing signs of caution, with many worried that the bullish pattern may have produced a false signal in a market still filled with uncertainty.
Volume has remained relatively low since the crossover, indicating a lack of strong buying interest. Without a surge in demand, SHIB has been unable to retest its recent highs or push through resistance.
Additionally, the broader memecoin market remains shaky, with sentiment swinging between cautious optimism and risk-off behavior. SHIB’s failure to capitalize on the technical setup underscores how little impact patterns can have in the absence of strong market conviction.
Conclusion
SHIB’s decline after forming a golden cross has cast doubt on the reliability of the bullish signal. With weak follow-through, falling prices, and growing fear of a false breakout, traders remain cautious about the token’s next move.
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