Shiba Inu Eyes Signal Never Seen Before on the Weekly Chart

The price of Shiba Inu is approaching a critical zone as it records its first-ever 50-week and 200-week moving averages crossing.

Since making its market debut in 2021, Shiba Inu has never had a golden or death cross on the weekly chart. That has changed, as recent price action has now taken the MA 200 above the MA 50.

Major Signal for Shiba Inu?

For the uninitiated, a death cross in this case occurs when the 50-week moving average crosses below the 200-week moving average. Meanwhile, a golden cross would see the 50-week MA move above the 200-week MA.

As the name suggests, a death cross signals short-term bearishness, indicating that the underlying asset may decline further. However, a golden cross suggests that a bullish price development is on the horizon.

Currently, the 50-week MA trades below the 200-week MA, with bearish price actions indicating a death cross has occurred. However, this was the only possible direction at this point, seeing as the 50-week MA was already above the 200-week MA. At the time of writing, the former is at $0.000014045 and the latter at $0.000014315.

While a death cross typically signals bearish price trends, some analysts argue that it is a reflection of past price actions. Shiba Inu has declined 10.37% since the start of November and 27.8% since August, but the cross is just happening now. 

Hence, they argue that the indicator lags prices and may ultimately prove non-detrimental to Shiba Inu. Remarkably, this remains unproven and thus speculative. Moreover, if market conditions improve and SHIB’s short-term price action recovers, the 50-week MA could push above the 200-week MA, leading to the golden cross.

Severe Price Weakness as SHIB Approaches Major Support

Meanwhile, Shiba Inu has turned red in literally all notable timeframes. The meme coin has corrected by 2.1% over the past 24 hours, 11% in the past seven days, and 8.68% in the past month, trading at $0.00000896. These bearish developments further add pressure on holders, who have endured a 57% loss in their portfolio since the start of this year.

Analysts point to SHIB’s hold of the $0.000008-$0.00009 support as a good sign. Specifically, James Waynn predicted that this could spark a rebound, aligning with his ambitious $0.10 projection.

If bearish momentum persists and bears push Shiba Inu below this support, analyst MMB Trader identified the $0.0000060 demand zone as a major stronghold for bulls. He expressed confidence that the area would provide the required momentum to push the token to $0.0000773.