The recent Shiba Inu gold cross has created a lot of excitement in the markets, while the subsequent pullback has increased attention to key support levels. Despite previous bullish signals, SHIB’s price action has been markedly volatile in recent days.
“We saw a significant increase in trading volume after the golden cross,” a COINOTAG analyst said about Shiba Inu’s recent developments, noting the volatile mood of the market. “Price corrections and an increase in network activity are among the key factors affecting SHIB’s market dynamics.”
In the cryptocurrency market, a golden cross is usually considered a bullish signal. Recently, the SHIB/USD pair showed this formation: the 50-day moving average crossed above the 200-day moving average, creating a traditional golden cross. This technical formation creates expectations of a potential price increase and attracts investors.
However, the optimism after the gold cross was soon replaced by a sharp price correction. SHIB’s price fell from $0.00002622 to $0.00002453, a 4.07% drop in 24 hours. This sudden price movement led many investors to reconsider their positions due to volatility.
The recent volatility spike, along with the moves in the Bollinger Bands, points to the potential for further downside risk. The price’s decline to near the lower band is a warning that buying and selling pressure may continue. This could continue unless SHIB’s support levels are consolidated. The main moving averages are currently at $0.00001902 and $0.00001833, which stand as critical support levels should the declines continue.
According to Santiment’s latest reports, Shiba Inu is experiencing a significant increase in network growth. The number of new addresses peaked at 6,612, before falling back to around 4,612. This increased network activity is an important indicator of increased investor interest and price stability.
Increased on-chain activity usually parallels price movements; more participants on the network can lead to increased demand and thus upward price movements. However, the sustainability of this growth will depend on whether SHIB can recover from recent price corrections. The new momentum provides a solid foundation for SHIB, but a decrease in the number of active participants on the network could negatively impact price stability.
As SHIB struggles to sustain its price above the $0.00002450 level, traders should focus on critical support levels. The next important support areas are the psychological hurdle level of $0.00002300 and the 50-day moving average at $0.00001902.
A break below these levels could trigger a deeper decline, with prices falling to $0.00001833 or lower. On the other hand, a bounce above $0.00002600 could signal new bullish momentum for SHIB and allow it to reclaim lost ground.
While the golden cross initially raised hopes among Shiba Inu investors, subsequent price action highlights the difficulties in sustaining upward momentum. Investors should carefully monitor their portfolios to assess potential price movements for SHIB and gain valuable insights with tools like the SHIB Profit Calculator.