The price of Shiba Inu (SHIB), the popular meme-inspired cryptocurrency, has recently come under a lot of selling pressure, dropping over 6.1% in the past 24 hours. Right now, SHIB is trading at $0.0000164, which is close to the low it hit in late October.
This is a big deal because its breaking below its 50-day moving average on the daily price chart and dropping below this band, which is a key indicator for traders looking to gauge short-term trends, has caught the attention of investors. This level had not been breached since June, so this is the first dip below it in five months.
The last time SHIB fell below the 50-day moving average, it led to a sharp decline in the asset’s performance. In that case, the Shiba Inu token fell by almost 50% over the course of 100 days. With SHIB approaching another significant technical event — the golden cross — it is natural to wonder what the future holds for the token.
In technical analysis, a golden cross happens when a short-term moving average crosses over a long-term moving average, which can signal potential upward momentum.
However, with SHIB struggling to stay above its key short-term levels, this anticipated cross may face new challenges. If it breaks through a critical level during the formation of the golden cross pattern, it could change what we expect for the direction of the symbol.
This could delay or make it more complicated for there to be bullish momentum from this formation.