Shiba Inu (SHIB) is currently enduring substantial market pressure amid a prolonged downtrend. Recent technical evaluations indicate that the asset is nearing the formation of a death cross on its daily chart—a development that technical analysts typically interpret as a bearish signal. It is important to note that Shiba Inu is no stranger to such formations, having experienced similar technical patterns in the past . Understanding the Death Cross A death cross is identified when a short-term moving average, generally the 50-day average, crosses beneath a long-term moving average, such as the 200-day average. This occurrence on a daily time frame is commonly associated with continued downward momentum over the medium term. Although the death cross has not been fully established for SHIB, market data reveals that the token has already experienced a decline of approximately 3.22% since the start of the week. This price drop appears to reflect market participants’ anticipation of further decreases. The Potential Scenarios There are two primary scenarios under consideration. The first scenario posits that the downward trend will persist, with the next key support level situated at approximately $0.000011. This figure represents a level roughly 37% lower than the current trading price. If SHIB’s price breaches this support, it could trigger additional selling pressure, deepening the decline and reinforcing the bearish outlook. This scenario underscores the risk of further deterioration in market sentiment, as investors adjust their expectations based on the technical signals observed. The second scenario envisages a period of price consolidation, with the token trading within a defined range between $0.000011 and $0.000017. In this situation, SHIB would remain confined within these boundaries until market forces drive the price to either extreme. A breakout above or a breakdown below this range would provide further insights into investor sentiment and help clarify the token’s longer-term direction. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 It is important to emphasize that although a death cross is widely regarded as a harbinger of continued bearish activity, its formation might also be interpreted as a sign that the current phase of price decline is nearing its conclusion . If the pattern materializes and the subsequent market response indicate stabilization, it may suggest that the period of substantial depreciation could be drawing to an end. However, given the prevailing market conditions and the existing downward pressure, any anticipation of recovery should be approached with caution. Shiba Inu (SHIB) faces critical juncture as it approaches the formation of a death cross on its price chart. With the possibility of either a further decline towards the $0.000011 support level or a period of consolidation within a narrow trading range, the future direction of the asset remains uncertain. Investors are advised to monitor key technical indicators and support levels carefully, these factors will be essential in assessing whether the current downtrend will continue or eventually end. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Shiba Inu (SHIB) Approaches a Death Cross. Here’s the Implication appeared first on Times Tabloid .
