Shiba Inu Coin Golden Cross Dream Shattered?
The US election and market turbulence have slowed down SHIB's upward momentum!
At the end of October, the golden cross - which is usually a bullish signal - seemed to be approaching. A golden cross occurs when the 50-day moving average crosses above a longer-term SMA (usually the 100-day or 200-day moving average).
Currently, the uncertainty surrounding the US 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 momentarily increased the possibility of the 50-day moving average crossing the 200-day moving average, with traders eagerly anticipating the long-awaited golden cross. However, this rebound stalled at the resistance level of the trend line and the intersection of the 200-day moving average.
After being rejected at this price level, SHIB fell more than 10% and broke below the 50-day moving average. This movement does not look particularly optimistic for traders. A breakthrough below the 50-day moving average indicates that SHIB is performing weakly in the near term, and the prospects for the golden cross are once again hindered.
However, there are still some support levels to watch in the short term, specifically at $0.000014 and $0.000015. If the price can rebound, these two support levels may become critical focal points, with bullish targets pointing once again to the 50-day and 200-day moving averages.
In recent days, Binance's top traders have generally maintained a bullish position, with net long positions 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, ahead of the US election, the market still seems to carry a certain level of risk. Despite the price of Shiba Inu Coin falling more than 10%, speculators remain optimistic.
