In a significant technical development, Shiba Inu’s four-hour chart has witnessed the emergence of a death cross for the first time in October. This concerning pattern, in which the 50-period moving average dips below the 200-period moving average, signals potential short-term weakness. The timing coincides with escalating selling pressures in recent days.
Prolonged Price Decline Raises Concerns
The price of SHIB has suffered a continuous three-day descent, falling below the critical $0.000005 mark. This decline is mirrored across hourly, two-hour, and three-hour charts since the beginning of October, underscoring the cryptocurrency’s struggle to maintain upward momentum. Known as a meme coin with a broad investor base native to the Ethereum network, Shiba Inu has slipped below its short-term averages, intensifying a negative outlook.
The descent of the 50-period average below the 200-period average on Shiba Inu’s four-hour chart signals heightened selling pressure in the short term.
U.S. Inflation Data Erodes Risk Appetite
The retreat in cryptocurrency markets has been influenced by the surpassing U.S. inflation figures. The Bureau of Labor Statistics reported a 0.6% monthly increase in the consumer price index, pushing annual inflation to 3.7%. This release dampened the appetite for riskier assets across financial markets.
Following the Federal Reserve’s first rate hike in over three years to a range between 3.75% and 4% in September, market expectations lean towards interest rates remaining unchanged in October. However, there is anticipation for another hike in December.
With inflation figures exceeding expectations, market sell-offs accelerated, magnifying the pressure on SHIB.
Key Levels to Watch in the Short Term
SHIB has declined by 3.88% in the last 24 hours, trading at $0.000005015. Over the past week, it has suffered a 6.66% loss. The sustained selling pressure has caused the price to settle below crucial moving averages.
Continued selling could potentially revisit the $0.000004 region. However, the formation of a death cross alone does not confirm a deeper correction. Key determinants will include trading volume, price reactions at near-term support levels, and the vigor of buyers’ defensive strategies.
If buyers regain strength, SHIB could climb back above $0.000005, and potentially breach $0.000006. Otherwise, due to the short-term bearish signals against the backdrop of a previously positive daily chart mood, the price might remain trapped within a sideways band for a period.
