The Shiba Inu (SHIB) token is facing pressure due to negative technical signals on the four-hour chart, possibly predicting a price decline.
Technical Signals and Their Significance
A so-called 'death cross' has appeared on the Shiba Inu chart, where the 23-day moving average fell below the 200-day one. This event triggered a sharp 7% price drop, worsening the already bearish sentiment within the meme token market.
Current Market Situation
The Shiba Inu token is currently trading at about 0.00001330, down from 0.00001440 just a few days ago. This decline occurred after the price failed to recover above its short-term moving averages, which are also trending down.
Outlook and Possible Scenarios
Traders now need to closely monitor the upcoming 50/200 death cross. If confirmed, it could lead to increased price pressure, with the potential for retesting lower levels observed earlier this year.
Despite efforts by Shiba Inu bulls to maintain the price, the overall market sentiment remains negative. Without changes in market conditions, the token may face further difficulties in the coming weeks.
