After a brutal sell-off, Shiba Inu is at a turning point, showing signs of possible recovery. However, growth may be hindered by the formation of a death cross.
Current Situation of Shiba Inu
Following a recent decline below important support levels, Shiba Inu has experienced a modest recovery and is currently trading at $0.000016. Despite the recent sell-off, the coin may face new challenges.
Technical Indicators and Their Significance
According to technical indicators, Shiba Inu may be in trouble. A death cross occurs when a long-term moving average, such as the 200 EMA, crosses below a short-term one, typically the 50 EMA. This signal often leads to prolonged downtrends and may indicate further downward momentum for the coin.
Possible Scenarios and Prospects
If Shiba Inu is able to maintain above $0.000015, it might recover toward $0.0000189, a level that was once support but is now resistance. In the event of continued bullish momentum, a test of the $0.000020 level is possible. However, if Shiba Inu loses $0.000015, the next important support is at $0.000012. Breaching this level could lead to a more severe selloff.
The near-term trajectory of Shiba Inu depends on its ability to stay above important support levels and avoid the formation of a death cross. Investors should closely monitor volume changes and moving averages to confirm the next move.
