Shiba Inu Death Cross Appears on Daily Chart as Price Loses Support

Shiba Inu ($SHIB) is battling bearish pressure that threatens to undo its over 8.85% weekly gains. In the last 24 hours, the meme coin’s price and volume flipped negative as it recorded a death cross on its charts.

Death cross signals weakening momentum for Shiba Inu

For context, a death cross emerges on an asset when its short-term moving average dips below a long-term moving average. Crypto traders interpret the death cross as a bearish signal, and many exercise caution in transacting the affected asset.

CoinMarketCap data shows that in the last 24 hours, Shiba Inu is changing hands at $0.000005876, which represents a 1.63% decline within the period. This is slightly more than the broader crypto market pullback driven by Bitcoin’s price reversal.

Shiba Inu’s trading volume has also suffered a decline as it slipped into the red zone, down by 7.04% to $145.03 million within the same time frame.

Shiba Inu’s death cross sends the message that its momentum is weak and things could get worse. $SHIB is likely to reverse the previous gains made in the last seven days and slip further down if nothing shifts.

However, on the positive side for $SHIB, although the momentum is weak, selling pressure has not soared into the extremes. If the trading volume does not decline into double figures and the broader crypto market recovers, the meme coin has potential to rebound.

Large $SHIB transfers raise sell-off concerns

It is worth mentioning that market observers have spotted over 112 billion $SHIB transferred to crypto exchanges in the last 48 hours. If those movements translate to a sell-off, it could worsen the price outlook for the meme coin’s recovery journey.

Shiba Inu’s ability to ride out these bearish pressures and reclaim the $0.0000060 price level might determine its future trajectory. Failure to break out could see $SHIB’s weekly rally fail.