Key Insights
- Shiba Inu recently dropped over 12% after a golden cross, but technical signals now hint at a potential 32% rally.
- The death cross forming on SHIB’s chart could lead to an unexpected price surge, targeting $0.00001.
- Despite the bearish crossover, low resistance above and minimal exchange activity suggest SHIB may bounce back strongly.
Shiba Inu (SHIB) is creating a dramatic shift in its price action, as it moves from a bullish golden cross to the formation of a bearish death cross. On January 15, SHIB showed an optimistic signal with a textbook golden cross, where the 23-day simple moving average (SMA) crossed above the 50-day SMA. This often leads to bullish market sentiment, and many traders rushed to buy into SHIB, pushing its price higher. However, the coin defied expectations by immediately falling over 12% in value, catching many off guard.
Now, as the technical chart shifts once again, the shorter-term 23-day SMA is about to dip below the 50-day SMA, indicating a potential death cross. This typically marks the beginning of a downtrend, a classic signal of further price declines. However, there is a twist. The bearish death cross could act as a setup for an unexpected price jump, possibly driving SHIB’s price up by 32% and bringing it closer to the $0.00001 level. This price target represents a significant rally from its current position.
No Strong Resistance Above for SHIB
Despite the formation of this bearish pattern, the broader market conditions suggest that SHIB may not face much resistance if the price begins to climb. On-chain data reveals that major liquidation clusters are not situated above the current price, meaning there is not an overwhelming pressure from traders to sell. Additionally, the activity on major cryptocurrency exchanges like Coinbase and Binance remains relatively low, suggesting that the recent dip in SHIB’s price is more of a natural correction rather than driven by panic selling or liquidation events.
The 200-day exponential moving average (EMA) sits at around $0.00001018, marking a key price target that may now act as a magnet for SHIB. This level represents a 32.7% increase from the current trading price, offering a significant potential upside. While the market continues to react to the sudden drop after the golden cross, traders are now eyeing the possibility of SHIB reclaiming those losses and moving toward the key price level.
With the 200-day EMA in sight, it seems the Shiba Inu coin is trapped between two competing technical indicators. The failed bullish golden cross now gives way to a bearish death cross, but the lack of resistance above and strong on-chain data point to the potential for an unexpected upward movement. Traders should keep an eye on these developments, as SHIB’s price action could take a surprising turn in the coming days.
