Shiba Inu (SHIB)’s daily moving average (MA) 50 has crossed below the MA 200, confirming a bearish “death cross” on its chart.
Shiba Inu’s chart last displayed a death cross in February 2022. In the months that followed, Shiba Inu‘s price underperformed in line with the unfavourable market circumstances that prevailed, closing the year at lows of $0.00000788. The death cross developed in late February 2022, when Shiba Inu traded in the $0.000026 to $0.000028 area.
Let’s go to 2023. Shiba Inu started to grow in 2023 and peaked on February 4 at $0.0000159. Shiba Inu quickly fashioned its first golden cross of 2023 once the rally came to a halt. The golden cross, which is the reverse of the death cross and is seen as a good sign, is produced when the MA 50 crosses over the MA 200.
The most recent market drop overtook the events, and various crypto assets oversold in short-to-intermediate time frames.
The market may be poised to plunge much more as a result of the two averages’ bearish crossing. This is not always the case, though, since the death cross may also signal the start of a bottoming phase for a crypto asset.
Backward-looking data?
The “death cross” indication has a terrible reputation for frequently catching sellers on the incorrect side.
This is because to the death cross’s potential for unreliability as a lagging signal, which has been noted by some, regardless of whether it appears on the daily or weekly charts. The claim that the indicator represents previous performance of the asset since it is based on backward-looking moving averages is still valid. Shiba Inus could appear to fit this description.
The daily RSI for SHIB is still in the 30 oversold levels, which may indicate that the stock is still very oversold and may be bottoming out.
SHIB had decreased somewhat in value during the last 24 hours to $0.0000087 as of the time of writing.
