The emergence of a double death cross in Shiba Inu’s short-term charts has heightened uncertainty around a potential October rally. The recent crossover of the 50-period moving average below the 200-period average in hourly and two-hour time frames suggests weakening momentum, casting a shadow over previously optimistic outlooks.
Technical Weakness in Short-Term Indicators
A death cross, where a short-term moving average crosses below a longer-term one, often signals declining momentum. For Shiba Inu, the presence of this pattern on both hourly and two-hour charts indicates that selling pressure is becoming evident across several short-term indicators.
This development follows closely on the heels of the first golden cross witnessed on Shiba Inu’s daily chart in two years. Seen last week, this bullish signal had last appeared in November 2024, fostering optimism and helping push SHIB prices up to $0.0000334 by December 2024.
The double death cross suggests that SHIB must reclaim key technical levels before confirming any expected October rise.
Optimistic October Narrative Faces Challenges
October has traditionally been associated with positive performance in cryptocurrency markets. However, recent technical signals specific to Shiba Inu have weakened this narrative. For buyers to regain strength, the price must return above pivotal levels, restoring momentum.
Periods of close surveillance of technical levels often highlight investor interest, particularly in highly volatile assets. The meme token market can swiftly transform internet trends into multi-million-dollar concerns. As highlighted by data from Fomo, a $99 initial stake evolving into approximately $370,000 in Niu Lai illustrates this volatility. Monitoring not just prices but the timing and choice of transactions is increasingly crucial. Fomo App brings together token discovery and trading by collating social streams, investor rankings, and trade alerts within a single platform.
Federal Reserve Minutes Add to Market Concerns
Over the past 24 hours, Shiba Inu has dropped by 1.36% to $0.000005405, coinciding with broader market pressures. Federal Reserve minutes released on Wednesday suggested that officials might see the need for another rate hike to curb inflation before the year’s end.
Market participants speculate that the Fed might hold rates steady at its October 28 meeting, while the December 9 meeting may leave the door open for a rate increase. Attention now shifts to the upcoming weekly jobless claims and the preliminary consumer sentiment data from the University of Michigan, due on Thursday and Friday, respectively.
Fed officials indicated a rate increase might be necessary before year-end to control inflation.
Support Levels Face Retests
After peaking at $0.000006018 on October 5, Shiba Inu has retreated, marking its third consecutive day of declines. The price has dipped below the $0.00000544 support level, corresponding with the 50-day moving average. Observers are now watching whether the $0.00000523 level, aligned with the 200-day moving average, will hold.
As short-term indicators continue to reflect weakness, a recovery in the technical outlook will require reclaiming lost support levels. Without this, selling pressure is likely to persist for some time.
