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Shiba Inu (SHIB) faces significant selling pressure as a “death cross” emerges, indicating potential further declines amidst a broader market downturn.
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The recent decline comes in conjunction with major profit-taking activities across the cryptocurrency market, leading to substantial liquidations for leveraged positions.
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According to CoinGlass data, around $627 million in leveraged positions were liquidated recently, with SHIB’s decline marking a critical phase for its traders.
Shiba Inu (SHIB) experiences bearish pressure following a death cross, coinciding with substantial market sell-offs. Will SHIB’s price stabilize?
Understanding the Death Cross on Shiba Inu’s Chart
The concept of a death cross is essential for understanding current market conditions for Shiba Inu. This phenomenon occurs when a short-term moving average, specifically the 50-hour moving average, crosses below a long-term moving average, such as the 200-hour moving average. Currently, this technical indicator suggests increased bearish momentum, which could further diminish investor confidence in the near term.
Market Context and Recent Performance of SHIB
In the past week, Shiba Inu (SHIB) had celebrated substantial gains before succumbing to a sudden downturn. As of now, SHIB has seen a decline of approximately 6.46% in the past 24 hours, trading around $0.00002. This downward trend began escalating on January 18, 2023, when bullish traders encountered robust resistance at the $0.00002497 level. The situation intensified when attempts to recover were halted by bears at around $0.000022.
Analyzing the Broader Market Impact
The current price action of Shiba Inu is reflective of broader market dynamics. The significant liquidations—over $627 million—indicative of traders being caught off guard amid a bearish reversal in the cryptocurrency landscape. This pattern is leading to a heightened level of caution among investors, with prolonged volatility anticipated.
Future Outlook for Traders of Shiba Inu
Despite the bearish technical signals indicated by the death cross, there’s a possibility for short-term recovery. It is crucial for traders to monitor critical resistance levels at $0.000019 and $0.000025. A breach of these levels could signal a potential reversal or a more defined trend direction. However, current sentiment leans towards a cautious approach, as volatility may continue to create uncertain conditions.
Conclusion
In summary, Shiba Inu is navigating a challenging environment marked by recent bearish signals and significant market liquidations. The emergence of the death cross on its hourly charts raises concerns among traders; however, it also serves as a reminder of the market’s inherent volatility. As SHIB continues to react to broader cryptocurrency trends, traders should focus on key price levels to better position themselves for any forthcoming changes in momentum.
