The cryptocurrency market has faced significant downward pressure over the past 48 hours, leading to widespread liquidations totaling $627 million across various digital assets. Shiba Inu is not spared in this decline, as the token has experienced notable selling pressure and the appearance of a bearish technical signal known as a “death cross.” A death cross occurs when a short-term moving average, such as the 50-hour moving average, crosses below a long-term moving average, such as the 200-hour moving average. This crossover suggests potential bearish momentum and typically indicates a further decline in asset value. For this asset, the formation of this pattern on its hourly chart raised concerns about the continuation of its recent downtrend. Recent Performance Although Shiba Inu has shown signs of recovery, it previously recorded a 6.46% decline, bringing its price down to $0.00002 yesterday. Every week, the token fell by 7.10%. The token’s downtrend began on January 18, when upward momentum was halted at $0.00002497 due to resistance from sellers. The asset then recorded losses in three of the following four trading sessions. An attempt to recover on January 20 briefly pushed the price to $0.000022, but bearish sentiment soon returned, driving further declines before finally recovering to $0.00002043. Market-Wide Liquidations Exacerbate Volatility The initial market sell-off contributed to heightened volatility, with traders facing significant losses in derivatives positions. According to data from CoinGlass, liquidations have impacted long positions the most, with over $463 million in bullish bets wiped out in the past day. This widespread deleveraging has intensified bearish sentiment across the market. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Implications of the Death Cross While the death cross observed on the token’s hourly chart signaled the potential for extended bearish momentum, it is important to note that this indicator lags and often reflects price movements that have already occurred. As a result, traders should always exercise caution when relying solely on this pattern for decision-making. Some market analysts noted that the majority of selling pressure may have already been absorbed, raising the possibility of a relief rally in the near term. Key technical levels to watch include $0.000019 on the downside and $0.000025 on the upside. A clear breakout above the upper resistance level could signal the end of the current range-bound trading and pave the way for further recovery. Shiba Inu remains under pressure amid the broader cryptocurrency market’s struggles. In the coming days, traders are likely to monitor price action closely, along with other indicators, to assess the potential for either continued decline or a reversal. 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) Death Cross Emerges. Here’s the Significance appeared first on Times Tabloid .
