Shiba Inu Death Cross Adds Fresh Pressure on Key Support

Shiba Inu just recorded a death cross on the lower timeframe, raising further doubts about the possibility of its near-term price recovery.

This cross specifically occurred over the 2-hour SHIB/USD chart, building on a similar event on the lower timeframes. If Shiba Inu continues its current momentum, it may be only a matter of time before the bearish indicator prints on higher timeframes, further strengthening the bearish narrative.

Key Points

• Shiba Inu just recorded a death cross on the lower timeframe, raising further doubts about the possibility of its near-term price recovery.
• On February 23, the 200 MA crossed above the 50 MA, suggesting fading momentum and a swing from bullish to bearish.
• The February 23 dip following the death cross saw Shiba Inu test the key support at $0.0000060.
• Currently at $0.00000592, it has shown resilience so far, and how far it holds the demand zone would determine its next course of action.
• A sustained hold would spark a rebound to higher resistance levels at $0.0000066, $0.0000072, and $0.0000078.
• Losing the $0.0000060 support would send SHIB to lower levels, such as $0.0000057 and $0.0000050.

Shiba Inu Death Cross

Notably, the SHIB death cross occurred between the 200-period SMA and the 50-period SMA, which represent long- and short-term indicators, respectively. On February 23, the 200 MA crossed above the 50 MA, suggesting fading momentum and a swing from bullish to bearish.

Meanwhile, this had earlier happened on the 1-hour timeframe on February 19. Such a progressive death cross is concerning, as it continues to confirm the bearish trend up the chart chain.

However, some argue it is a lagging market indicator, as it often reflects what is already happening in the market. Notably, the cross occurred just after SHIB printed a large red candle on the 2-hour chart on Monday, where it corrected 4.2%.

Others still view the death cross not just as a reflection of developing price action but also as an indicator of subsequent price trends. 

Correction Pushes SHIB to Key Support

The February 23 dip following the death cross saw Shiba Inu test the key support at $0.0000060. The meme coin dropped to the area early Monday but rebounded from there to quickly reclaim $0.00000614.

That momentum did not last, as macro uncertainties weighed on the crypto sector, sending SHIB back to the $0.0000060 support level. Currently at $0.00000592, it has shown resilience so far, and how far it holds the demand zone would determine its next course of action.

A sustained hold, as it did on February 12, would spark a rebound to higher resistance levels. The closest ones are $0.0000066, $0.0000072, and $0.0000078. Meanwhile, for a sustainable rally, SHIB would need to break above major moving averages, as it is practically below all of them. Until then, any upward move would be seen as a relief pump rather than a trend reversal.

Losing the $0.0000060 support would send SHIB to lower levels, such as $0.0000057 and $0.0000050. Buyers previously stepped in at these levels earlier, and analysts remain upbeat that counter-buying pressure will meet any dip to these supports.