Key Insights:
- Shiba Inu’s price drop reaches a low of $0.00000710, the lowest since October 2023, signaling ongoing bearish pressure.
- The formation of a weekly death cross with MA 50 crossing below MA 200 raises concerns about Shiba Inu’s short-term momentum.
- Despite recent losses, Shiba Inu could see a potential bullish reversal, with price targets indicating a 100% rise if bulls return.
Shiba Inu’s price has been on a steady decline, hitting a low of $0.00000710 on Friday, a level not seen since October 2023. The cryptocurrency has now endured four consecutive weeks of losses, marking a significant downward trend. The recent dip is part of a broader market decline that has affected many assets across the crypto space, with Shiba Inu showing a 15% drop over the last week.
In a notable technical development, Shiba Inu has experienced its first-ever death cross, a bearish chart pattern indicating weakening momentum. The crossover of the 50-week moving average (MA 50) falling below the 200-week moving average (MA 200) is a key signal of potential continued declines. Traders typically interpret this pattern as a warning of further losses, as it suggests that short-term price action is weakening relative to the longer-term trend.
Market Conditions and Liquidation Surge
The ongoing decline in Shiba Inu’s value is not isolated, as the broader cryptocurrency market is also under significant pressure. Over the past 24 hours alone, more than $1.93 billion in leveraged positions have been liquidated, according to CoinGlass data. This reflects the increasing strain on the market, as investors struggle to find new buying opportunities following a sell-off in October. Additionally, with retail sentiment waning, it’s unclear when or if the market will see fresh support to reverse the current trend.
Although the death cross is often seen as a bearish signal, it can sometimes mark a local price bottom, signaling a potential reversal. If Shiba Inu holds steady near the $0.000007 range, it could establish a strong price floor. In this case, the cryptocurrency could rebound, with the next major resistance levels potentially reaching the $0.000014 range, signaling a potential 100% price increase if the bulls regain control of the market.
Despite the bearish technical indicators, Shiba Inu’s future remains uncertain as market conditions and investor sentiment continue to fluctuate.
