According to U.Today, the dog-themed cryptocurrency Shiba Inu (SHIB) is nearing a significant moving average crossover for the first time in 2024. The daily simple moving averages (SMA) of 50 and 200 are expected to converge soon, which could result in either a golden cross or a death cross. This development has captured the attention of market participants who are closely monitoring the situation.
TradingView data indicates that SHIB is on the verge of experiencing its first moving average crossover this year. The last occurrence of a golden cross for SHIB was in December 2023. Traders often use the 50-day and 200-day SMAs to assess market trends. A golden cross, a bullish indicator, happens when the 50-day SMA crosses above the 200-day SMA, suggesting a potential upward trend. Conversely, a death cross, a bearish indicator, occurs when the 50-day SMA crosses below the 200-day SMA, indicating a possible downward trend.
As SHIB approaches this critical point, market observers are keenly watching the behavior of the 50-day and 200-day SMAs. Currently, the 50-day SMA appears to be trending downward, increasing the likelihood of a death cross. If this bearish pattern materializes, it could signal a downtrend, potentially affecting SHIB's price. The exact nature of the crossover, whether it will be a golden cross or a death cross, remains uncertain.
At the time of writing, SHIB has seen a 2.35% increase in the last 24 hours, reaching $0.00001744, and a 6.35% rise over the past week. As the market awaits the outcome of this moving average convergence, the future direction of SHIB's price remains a focal point for traders and investors alike.