SHIB produces negative “death cross” pattern on short-term charts
The short-term price action of the Shiba Inu may be under threat as a negative moving average (MA) cross is visible on its four-hour chart.
The moving average (MA) 50 of Shiba Inu’s price crossed below the moving average (MA) 200 on the four-hour chart, forming a negative cross, or bearish “death cross.”
Although the pattern theoretically predicts another selloff, historical data may indicate otherwise.
The Shiba Inu four-hour chart provides important information about its short-term price movement, with MA crossings occurring at price peaks and lows.
Such a negative cross occurred in late August, and in the weeks that followed, SHIB price declined from a high of $0.00001483 on August 25 to a low of $0.0000092 on October 14. The rise in late October produced a positive cross. , but the bounce was brief due to the bearish market conditions seen so far in November.
The RSI indicator on the four-hour chart is skewed bearish. Thus, the bearish crossover might lead to further selling. Recent developments in the crypto market seem to confirm these fears.
Bahamas-based FTX has filed for bankruptcy last week after a lack of liquidity sent shock waves throughout the crypto industry. Amidst the crisis, the Shiba Inu team offered reassuring words to the community: “We are here to stand with you as we continue to grow and work together for a brighter future in which decentralization and DeFi innovation will bring more people to the world.” create new opportunities, and we invite everyone in the crypto community to join us in this effort.”
On the other hand, given that moving-average analyses are based on backward-looking data, death crosses have limited predictive value. Death crosses are the outcome of a protracted sell-off, and by the time the crossover occurs, the market is typically oversold.
At the time of publication, SHIB was changing hands at $0.0000092, down marginally over the past 24 hours and similarly down 24% over the past week.
