The Shiba Inu (SHIB) token is nearing the formation of a death cross on its weekly chart, considered a negative technical indicator.
What is a Death Cross?
A death cross occurs when a shorter-term moving average (usually the 50-week MA) crosses below a longer-term moving average, such as the 200-week MA. It is often seen as a bearish signal, indicating that downward momentum is gaining strength.
What to Expect from Shiba Inu?
While death crosses do not always lead to significant price losses, they frequently coincide with extended periods of weakness or sideways trading, particularly when accompanied by declining volume and lackluster sentiment. However, the emergence of a death cross should not be interpreted as an outright market crash indicator.
Support Levels and Market Sentiment
Currently, the $0.00001 level has shown to be strong support. If SHIB's price falls, bulls might expect to find support here. Overall market sentiment will also be crucial in determining SHIB's price direction. If the token finds a bottom, it might rally significantly to levels of $0.000045.
The formation of a death cross for Shiba Inu would be an important signal in the market, but the future development depends on market conditions and investor strategies.
