Leading meme coin Shiba Inu stalls again as growing price weakness and a broader market underperformance nullify a bullish cross.
Shiba Inu (SHIB) got enthusiasts believing again when it surged by over 6% in a day on Friday, from support around $0.0000070. However, it seems we are back to basics: the token’s inability to sustain an uptrend.
From the high of $0.00000766 on Friday, the top meme coin has retraced by 6.7% to its current price of $0.00000714, signaling a clear reversal. It also confirms that Shiba Inu might not be ready yet for a rebound.
Bullish Cross Nullified
Notably, Shiba Inu recently saw a bullish cross on the hourly chart, but that did not quite materialize. A notable cross between a long-term and short-term moving average, specifically between the 26-period MA and 9-period MA, flashed yesterday.
For context, when such a crossover happens, it signals bearish trend exhaustion and a possible bullish reversal. However, this signal did little to improve SHIB’s price, as strong price weakness persists.
The 26-period MA has crossed over the 9-period MA again, placing the token back into bearish territory. When a long-term MA moves over a short-term MA, it suggests the market is in a downtrend. Hence, SHIB could see far lower prices.
Notably, this is not the first time Shiba Inu has printed a reversal signal, only for a broader trend to prompt a change of course. In early December, it printed a golden cross, with the 50 MA crossing the 200 MA on the hourly timeframe. However, this did not materialize again, as bears maintained command of the token’s price direction.
Will Shiba Inu See Lower Prices
All these indicators point to one thing: bears are still in the forefront of the market proceedings. Moreover, RSI is flat at 34.53 and has not generated the required strength to push prices higher.
Shiba Inu also trends below key moving averages. It trades well below the 200-day, 50-day, and 20-day moving and exponential moving averages, a clear sign of price weakness.
The broader market trend is also not helping matters. Specifically, Bitcoin has continued to fluctuate, hampering the mood of the crypto market. Consequently, altcoins, including Shiba Inu, have suffered severe price underperformance.
Notably, SHIB could see lower prices if this trend continues. It is just a matter of how low it goes, unless bulls step in and change things quickly. Analysis has identified the $0.0000060 weekly support as the next possible target. How the token reacts in this key zone would determine what follows.
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