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The price of Shiba Inu (SHIB)the popular meme-inspired cryptocurrency, has recently come under heavy selling pressure, falling more than 6.1% in the last 24 hours. Currently, SHIB is trading at $0.0000164, which is close to the low reached in late October.
This is a big deal because breaking below its 50-day moving average on the daily price chart and falling below this band, which is a key indicator for traders looking to gauge short-term trends term, attracted the attention of investors. This level has not been exceeded since June, making it the first drop below it in five months.
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The last time SHIB fell below the 50-day moving average, it led to a sharp decline in the asset’s performance. In this case, the Shiba Inu the token fell by almost 50% in 100 days. As SHIB approaches another important technical event – the Golden Cross – it is natural to wonder what the future holds for the token.
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In technical analysis, a golden cross occurs when a short-term moving average crosses a long-term moving average, which can signal potential bullish momentum.
However, with SHIB struggling to stay above its key levels in the near term, this anticipated crossover could face new challenges. If it crosses a critical level during the formation of the golden cross pattern, it could change what we expect for the direction of the symbol.
This could delay or make more complicated the emergence of bullish momentum in this formation.