The meme-inspired cryptocurrency Shiba Inu (SHIB) recently formed the notable golden cross pattern, which usually indicates potential growth. However, instead of rising, the token's value sharply fell.
Golden Cross Formation
The golden cross is the intersection of two moving averages, with the younger moving average crossing the older one upwards, signaling potentially undervalued pricing and often predicting future price growth. In the case of SHIB, the golden cross already led to significant growth from December 2023 to March 2024.
Market Reaction
Despite the formation of the golden cross, SHIB's price fell more than 16% in the past two days, which might be attributed to a correction amid the latest Consumer Price Index (CPI) report. This drop can be seen as a correction after a recent price surge of more than 80% over the last 10 days.
Future of SHIB
The adjusted SHIB price could play a crucial role in the future direction, especially when market participants can focus on investment decisions without macroeconomic distractions. This could make SHIB's subsequent moves even more intriguing to watch.
SHIB continues to capture investor attention due to factors tied to its technical indicators and macroeconomic events. Like many cryptocurrencies, it is subject to fluctuations that can be both a consequence of expectations and outcomes of external reports.
