Shiba Inu News Today: Shiba Inu now forms a deathcross within the market, concerning many of the tokens holders.
The cryptocurrency market has encountered substantial downward pressure over the last 48 hours, resulting in extensive liquidations amounting to a staggering $627 million across various digital assets.
This dramatic shift has left many investors concerned about the future trajectory of their holdings.
Shiba Inu’s Struggles Amid Market Turmoil
Among the various cryptocurrencies affected, Shiba Inu has not been immune to this decline.
The token has faced significant selling pressure, highlighted by the emergence of a bearish technical indicator known as a “death cross.”
Understanding the Death Cross
A death cross occurs when a short-term moving average, like the 50-hour moving average, crosses below a long-term moving average, such as the 200-hour moving average.
This crossover is a bearish signal, suggesting potential downward momentum and often indicating further declines in asset value.
The formation of this pattern on Shiba Inu’s hourly chart has raised alarms about the possibility of continued downtrends.
Recent Performance Analysis
Despite some signs of recovery, Shiba Inu has recently endured a notable decline of 6.46%, with its price dipping to $0.00002 yesterday.
Over the past week, the token has experienced a loss of 7.10%.
The downturn for Shiba Inu began on January 18, when upward momentum was stalled at $0.00002497 due to strong resistance from sellers.
Following this resistance, the asset recorded losses in three out of the next four trading sessions.
Although there was a brief recovery attempt on January 20 that pushed the price up to $0.000022, bearish sentiment quickly returned, leading to further declines before the price settled at $0.00002043.
Shiba Inu is currently trading at $0.00001973.
Market-Wide Liquidations Heighten Volatility
The initial market sell-off has further exacerbated volatility, with traders facing significant losses in their derivatives positions.
Data from CoinGlass indicates that long positions were hit the hardest, with over $463 million in bullish bets liquidated in just one day.
This widespread deleveraging has intensified the prevailing bearish sentiment across the cryptocurrency market.
Implications of the Death Cross for Traders
While the death cross observed on Shiba Inu’s hourly chart suggests the potential for extended bearish momentum, it is essential to recognize that this indicator often lags behind and reflects price movements that have already transpired.
Therefore, traders should exercise caution and avoid relying solely on this pattern for their decision-making processes.
Some market analysts have suggested that the majority of the selling pressure may have already been absorbed, raising the possibility of a relief rally in the near future.
Key Technical Levels to Monitor
Traders should keep a close eye on key technical levels, which include a support level at $0.000019 and a resistance level at $0.000025.
A decisive breakout above this upper resistance could signal the end of the current range-bound trading and potentially pave the way for further recovery.
A Cautious Outlook
As Shiba Inu continues to face pressure amid the broader struggles of the cryptocurrency market, traders are likely to monitor price action closely in the coming days.
Observing other indicators will be crucial in assessing whether the market will experience a continued decline or a reversal in trend.
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Also Read: Shiba Inu Sees A Surge In Popularity Now Welcoming 7,548 New Wallets
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