Shiba Inu (SHIB), one of the most popular meme coins in the market, has recently shown a bearish pattern on its chart. Specifically, it has formed its first Death Cross of 2023 as the daily moving average (MA) 50 crossed below the MA 200.
This concerning pattern has not been seen on the SHIB chart since February 2022. During that time, the digital asset experienced a price decline over several months, aligning with the overall negative market trends. While SHIB ended the year at a price of $0.00000788, it was trading within a range of $0.000026 to $0.000028 when the death cross formation occurred.
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More Insight into the 2023 Death Cross of SHIB
Following the appearance of a bullish rally, Shiba Inu witnessed a price increase in 2023, reaching $0.000016 in early February. This upward movement led to the formation of the first golden cross of the year, which stands in stark contrast to the previously concerning Death Cross. The golden cross occurs when the MA50 crosses above the MA200 on the daily chart of the asset, indicating a bullish trend.
During the recent market correction, several digital assets experienced overselling. Consequently, Shiba Inu (SHIB) encountered its first Death Cross of 2023. The implications of this pattern could vary depending on the subsequent price movement from this point forward.
It is worth highlighting that the Death Cross is often considered unreliable as a lagging indicator. Critics argue that it reflects the asset’s past performance rather than predicting its future performance. This is an important aspect to consider when analyzing its implications for the future.
On the other hand, SHIB is currently observed as being oversold, indicating the possibility of reaching a bottom. Currently priced at $0.00000874, it has experienced a decrease of approximately 0.67% over the past 24 hours. However, it is crucial to closely monitor its movement from this point onward for a clearer understanding of its trajectory.
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