Shiba Inu (SHIB), one of the most popular meme coins in the crypto space, is now facing a major technical indicator that may signal more pain ahead – the Shiba Inu death cross. As traders brace for a potential shift in momentum, many are asking: is this the start of a deeper downturn for SHIB.
What Is a Shiba Inu Death Cross?
A Shiba Inu death cross occurs when the short-term moving average – typically the 50-day – crosses below the long-term 200-day moving average. This formation is considered a bearish signal in technical analysis and often points to extended downward pressure.
According to Cointelegraph and CoinDesk, SHIB’s recent price action has brought the 50-day MA dangerously close to the 200-day MA. In fact, a similar 23/200 moving average crossover already occurred recently, resulting in a 7% price drop.
SHIB Price Analysis After Death Cross Signal
The Shiba Inu death cross may not be the only concern. SHIB is currently trading between $0.0000117 and $0.0000133, with strong resistance at the $0.0000130 level. Technical data from TradingView and CoinGecko reveal:
- RSI has dropped below neutral (under 50), signaling weakening buying pressure.
- MACD has crossed into bearish territory, indicating a potential continued downtrend.
- Price is trading under all key EMAs, reinforcing bearish sentiment.
Could Shiba Inu Drop Further?
If the Shiba Inu death cross fully confirms with a 50/200-day MA crossover, analysts suggest SHIB could fall back toward the $0.000010 support level. This would represent an additional 10-15% drop from current prices.
However, some market analysts caution against overreacting. According to FXStreet, not all death crosses lead to massive corrections – especially if bullish momentum from Bitcoin or news catalysts enter the market. For example, Shiba Inu’s Layer-2 solution Shibarium and major exchange listings could reverse sentiment quickly.
Community Sentiment and On-Chain Indicators
Despite the technical outlook, SHIB’s community remains highly active. On-chain data from IntoTheBlock indicates growing retail interest and sustained token burns. The recent SHIB burn rate has surged by over 100%, which can reduce supply pressure long-term.
Still, the broader picture remains uncertain unless SHIB breaks above its 50-day MA with strong volume.
What Investors Should Watch Next
Investors keeping an eye on the Shiba Inu death cross should also monitor:
- Shibarium development updates.
- Burn metrics and token velocity.
- Bitcoin’s influence on altcoin recovery.
- Sentiment shifts on social platforms like X (formerly Twitter) and Reddit.
Short-term traders may look for swing opportunities, while long-term holders should focus on macro trends and project fundamentals.
Final Thoughts
The Shiba Inu death cross may be signaling short-term bearish pressure, but it also serves as a crucial moment for SHIB’s long-term investors to reassess strategies. As the crypto market evolves, only time will tell if this is a temporary dip – or the beginning of a more extended correction.
