Shiba Inu Coin Golden Cross Dream Shattered?
The U.S. election and market turbulence have slowed down SHIB's upward momentum!
At the end of October, the golden cross—typically a bullish signal—seemed to be approaching. A golden cross occurs when the 50-day moving average crosses above a long-term SMA (usually the 100-day or 200-day moving average).
Currently, the uncertainty surrounding the U.S. election is affecting market sentiment, preventing the bullish scenario from fully unfolding. After the price broke below a key long-term trend line, SHIB's downward trend temporarily halted at the 50-day moving average.
The subsequent rebound briefly increased the likelihood of the 50-day moving average crossing above the 200-day moving average, with traders beginning to anticipate the long-awaited golden cross. However, this rebound stalled at the intersection of the trend line's resistance level and the 200-day moving average.
After being rejected, SHIB dropped more than 10% and broke below the 50-day moving average. This movement does not appear very optimistic for traders. Breaking below the 50-day moving average indicates that SHIB has been performing weakly recently, and the prospect of a golden cross is once again hindered.
However, there are still some support levels worth watching in the short term, at $0.000014 and $0.000015. If the price can rebound, these two support levels may become key focal points, with bullish targets once again pointing to the 50-day and 200-day moving averages.
In recent days, Binance's top traders have had an overall bullish position, with the net long position ratio reaching as high as 60%. However, at the time of writing this article, these long positions have slightly decreased to 57%. Meanwhile, the total amount of open contracts has also dropped from $56 million to $37 million.
In simple terms, there still seems to be some risk in the market ahead of the U.S. election. Despite the drop in Shiba Inu Coin's price by over 10%, speculators remain optimistic.
