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Cryptocurrency prices have brought little to no joy in recent days, and the popular coin Shiba Inu (SHIB) is no exception. Losing almost 20% from its January high of $0.000025 is painful to say the least, but as the price chart and related formations for SHIB show, it could be just the beginning of the doom for popular meme cryptocurrency.
The first thing to note is the death cross that has formed on the 12-hour price chart of the Shiba Inu token. The death crossover is a pattern in which two moving averages cross, but the smaller one is decreasing and the larger one is increasing. In our case, these two moving averages are the 50-day and 200-day moving averages, which are popular in the cryptocurrency market.
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After the appearance of the disturbing pattern, the SHIB price immediately continued to decline, losing more than 11% in just a day and a half. At the moment, the meme coin’s price action is more reminiscent of the falling of a knife than something a sober investor would want to put money into.
Trading at $0.00002, SHIB is literally on the verge of losing its most important psychological and technical price. If it breaks down, the next stop could be $0.00001857, a further decline of 7.33%.
Two Paths for Shiba Inu (SHIB)
So there are actually two scenarios for SHIB, and neither of them can be considered positive in the short term. In the first case, we see the Shiba Inu Token maintain current levels, without either bears or bulls deciding the winner.
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In the second scenario, buyers will not enter the stock market until the SHIB price reaches absurd “oversold” levels, which could be close to last year’s sell-off.
However, if we try to find something positive, we can say that the death cross was formed in a shorter period of time and therefore it will not last long enough.