Direct from the desk of Dane Williams.
Shiba Inu (SHIB) coin today confirmed its first death cross.
That’s right, the Shiba Inu (SHIB) death cross is confirmed.
Dun dun dun!
With the slow moving 50-day moving average (MA) crossing below its 200-day MA and closing, the meme coin’s first death cross is in the books.
To see what I’m talking about here, take a look at the following SHIB/USDT chart:
SHIB/USDT Daily:
Can you see the dark blue 50-day MA crossing down through the light blue 200-day MA?
That’s the SHIB death cross!
What does the Shiba Inu (SHIB) death cross mean?
A death cross, like what we see playing out on the SHIB chart above, is a technical pattern indicating the potential for a major sell-off.
Death crosses occur when the slow moving 50-day moving average (MA) crosses below its 200-day MA.
They’re a technical indicator that is usually a precursor for a major sell off in the given cryptocurrency asset (which in this case is SHIB).
Like most technical indicators such as support and resistance, a death cross is somewhat of a self fulfilling prophecy.
The bearish price action that often follows it is down to the fact that everyone expects it to happen.
Hence contributing to it actually happening by continuing to sell.
If you Google Bitcoin death cross then you’ll get a ton of results.
But for some reason, the recent meme coin darling SHIB’s death cross, doesn’t seem like it’s getting the same exposure.
Why not?
One theory is that due to its relative age, there isn’t enough data on some of the popular charts to even print a 200 day moving average.
Coinbase charts for example don’t yet even have the data for 200 daily candles on TradingView.
If there’s no data, then did the SHIB death cross even happen?
But you can be assured that the SHIB death cross is in fact happening.
Combined with some pretty bearish looking daily candles that are retesting the MAs as resistance to boot.
Certainly not a combination that SHIB bulls and prospective buyers want to be seeing.
Final thoughts on the Shiba Inu death cross
If we’re being honest with each other, those making the decision to buy meme coins probably aren’t deep diving into the technicals.
I’ve made it extremely clear on my blog that I see SHIB as a scam and for me, there are much bigger red flags than a simple MA crossover.
The final decision on whether to buy SHIB is ultimately in your own capable hands.
All I can do is encourage you to make a good choice by staying the fuck away.
Best of probabilities to you.
Posted Using LeoFinance Beta
Return from Shiba Inu (SHIB) death cross confirmed to forexbrokr's Web3 Blog
