- Shiba Inu approaches first-ever weekly death cross, sparking investor caution signals.
- $0.00001 support level becomes critical as bearish pressure threatens SHIB’s stability.
- Weekly death cross may trigger extended weakness unless bulls regain market control.
Shiba Inu (SHIB) is approaching a crucial technical setup that has raised concerns among traders and analysts. The token is on the brink of forming a weekly death cross, a pattern that occurs when the 50-week simple moving average crosses below the 200-week moving average.
This signal is considered rare on higher time frames and is often linked to long-term market weakness.
According to TradingView data, the 50-week moving average has already started turning downward, bringing it closer to intersecting the 200-week trend line. Depending on the continuity of the current market trend, the crossover might be confirmed within the next few weeks.
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Although death crosses are more often observed in daily charts, those observed on a weekly scale are more important. They tend to signify a longer-term change of direction and may cause price stagnation or a slow price fall.
It would be the first ever weekly death cross in the history of Shiba Inu trading. As of the time report, SHIB had a price of 0.00001178, which showed a mild 0.17 upsurge in the last 24 hours. Regardless of the slight increase, the potential of a confirmed death cross is causing people to be more cautious in the entire market.
Source: Tradingview
Support at $0.00001 Holds Key as Traders Brace for Impact
So far this year, SHIB has repeatedly found support at the $0.00001 level. This zone has acted as a safety net during previous dips and is once again being watched closely. A strong defense of this level could limit downside risks and delay the confirmation of the bearish crossover.
Nevertheless, the general mood of the whole market is lowered, and the trading volume exhibits weaknesses. Unless bulls regain control, SHIB remains prone to more consolidation or pullback in the mid-term picture.
Even though not every weekly death cross contributes to an immediate crash, it is considered to be an indication that a bearish trend is gaining steam. Should the trend hold and sentiment not pick up momentum, SHIB may not easily experience its performance of reaching a high of $0.000045 in 2024.
As Shiba Inu moves closer to forming its first-ever weekly death cross, market participants are on alert. The coming weeks will be critical in determining whether SHIB avoids deeper losses or confirms the bearish signal.
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