Shiba Inu (SHIB) produces negative “death cross” pattern on short-term charts
Shiba Inu’s four-hour chart shows a negative moving average (MA) cross, which could be dangerous for the stock’s short-term price movement. On the four-hour chart, Shiba Inu (SHIB) price’s moving average (MA) 50 crossed below the moving average (MA) 200, creating a negative cross, sometimes known as a bearish “death cross.”
Shiba Inu Price Drops 24% Within a Week as Death Cross Forms
The pattern theorizes a further sell-off, although past data may suggest otherwise. With MA crossovers happening at price peaks and lows, the Shiba Inu four-hour chart offers crucial information regarding its short-term price movement.
In the following weeks, the SHIB price fell from a high of $0.00001483 on August 25 to a low of $0.0000092 on October 14. This negative cross took place in late August. The rise in late October resulted in a positive cross, but the surge was short-lived due to the bearish market conditions experienced thus far in November.
On the four-hour chart, the RSI indicator has a bearish bias. Therefore, additional selling could result from the bearish crossover. Recent changes in the cryptocurrency market appear to validate these worries. Following a liquidity shortage, Bahamas-based FTX filed for bankruptcy this week, shocking the entire cryptocurrency sector.
We stand here with you as we continue to grow and work together for a brighter future in which decentralization and Defi innovations create new opportunities for the people. We invite every crypto community to join us in this effort, the Shiba Inu team said in a statement during the crisis.
On the other hand, death crosses have little predictive power since moving-average studies are based on data that was only available in the past. Death crosses result from a protracted sell-off, and the market is usually oversold by the time the crossover takes place.
SHIB/USD 4-hour chart | Source: TradingView
SHIB was trading at $0.00000898 at the time of publication, slightly down over the previous 24 hours and down 24% over the previous week.
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