After a brutal sell-off, Shiba Inu is at a turning point and exhibiting signs of a possible recovery, but any attempts at recovery could be hampered by an impending death cross. Following a recent decline below important support levels, the asset has experienced a modest recovery and is currently trading at $0.000016.
SHIB may still be in trouble, though, according to technical indicators. A death cross happens when a long-term moving average like the 200 EMA crosses below a short-term one – typically the 50 EMA. This signal, which frequently results in protracted downtrends, is well known as a bearish indicator. Convergence between SHIB’s 50 and 200 EMA’s at the moment raises the possibility that this formation will occur.
It might signal additional downward momentum if verified, which would make it challenging for SHIB to maintain any significant recovery. A notable increase in trading volume during the most recent price action indicates that some traders are placing bets on a brief recovery. The nature of this volume spike is unclear, though, as some may be accumulating, while others may be using the modest recovery as exit liquidity, which would increase downward pressure.
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SHIB may stage a stronger recovery toward $0.0000189, a level that was once support but is now resistance, if it is able to maintain above $0.000015. SHIB may test $0.000020 on the further upside, but that scenario is contingent on persistent bullish momentum. If SHIB loses $0.000015, the next important support is located at $0.000012, a crucial area that, if breached, might lead to a more severe sell-off.
Whether SHIB can maintain above important support levels and steer clear of a death cross formation will determine its near-term trajectory for the time being. If buyers intervene, a relief rally might develop; however, if pessimism persists, SHIB may find it difficult to recover. For confirmation of the next move, investors should monitor volume trends and moving averages.
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