Shiba Inu nearing golden cross, historically linked to potential rallies.
Trading volume declines and reduced whale activity signal caution in demand.
Shiba Inu (SHIB), the second-largest meme-inspired cryptocurrency, is currently trading at $0.00001822, reflecting a 2.6% decline over the past 24 hours. However, despite this short-term dip, SHIB has experienced a remarkable 25% increase over the past month, showcasing its potential for volatility and growth.
Recent analysis indicates that SHIB is nearing its first golden cross since December 2023, with the 50-day and 200-day moving averages converging on the daily chart. This technical indicator has historically preceded significant price movements. For instance, following a similar convergence in early 2023, SHIB saw an impressive 48% surge in the subsequent two weeks.
In the following weeks, the price rebounded, climbing nearly 20%. The formation of this golden cross, while not a guaranteed harbinger of price increases, has often signaled bullish trends for SHIB.
Meanwhile, current trading dynamics show a reduction in whale activity, which may indicate decreased demand. Although SHIB has maintained a bullish outlook, its trading volume has dipped by 6.15%, hinting at potential challenges ahead. The psychological resistance level at $0.00002 remains a significant barrier for bulls, having held firm since June.
SHIB Bulls Can Give a Comeback?
Market indicators such as the Relative Strength Index (RSI) suggest bullish sentiment, while the On-Balance Volume (OBV) presents a less optimistic view, reflecting stagnant demand in October. Investors are closely monitoring the 90-day Shiba Inu Market Value to Realised Value (MVRV) ratio, which, although trending upward, raises concerns over profit-taking.
SHIB Price Chart, Source: Sanbase
The upcoming weeks could be crucial for SHIB as it navigates through these volatile conditions. Analysts suggest that the $0.0197-$0.0202 range could be pivotal, potentially leading to a short squeeze if breakout momentum can be sustained. Ultimately, while the outlook remains cautiously optimistic, the marketâs inherent volatility calls for careful observation as SHIB approaches this critical juncture.
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