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Shiba Inu has formed a death cross on lower timeframes, but whales are aggressively buying the dip, offering fresh optimism for the price.
A death cross often happens when a long-term moving average moves above a short-term moving average. Typically, this crossing occurs between the 200- and 50-period MAs. Today, this interaction has happened, raising further concerns about the price trajectory of Shiba Inu ($SHIB).
Shiba Inu Death Cross
On the 30-minute timeframe, the 200 MA has moved over the 50 MA, suggesting that earlier price recovery could be nearing its end. For context, Shiba Inu bounced from a low of $0.00000426 on Monday, forming a golden cross.
The 50 MA crossed the 200 MA, providing the momentum that pushed $SHIB to a high of $0.00000447, a nearly 5% increase from the low. However, the meme coin could not overcome the resistance there, and a rejection followed.
Shiba Inu Death Cross
Since then, $SHIB has slid lower to $0.00000436. During the course of this pullback, a death cross formed, casting doubts on the chances of a further recovery attempt. Typically, this crossing suggests that buying momentum is fading, which signals the end of an uptrend.
However, some see the signal as a lagging indicator. The argument is that it reflects what has already happened in the market, rather than providing hints of what to expect. This suggests that the downtrend is already priced in, and $SHIB could not fall further due to the crossover.
Nonetheless, it remains a bearish indicator and one that Shiba Inu bulls would not want to see, especially as they hope for a sustained recovery. The fact that it also happened on lower timeframes further boosts confidence. If such a crossover appears on higher timeframes, it will confirm the bearishness and increase the chances of an impact on $SHIB’s price.
Should prices trend lower, the critical support areas to watch for $SHIB are at $0.00000241 and $0.00000155. Further bearish pressure could take the token to $0.0000010.
$SHIB Whale Accumulation Presents Fresh Buying Pressure
Meanwhile, Shiba Inu whales continue to buy the dip. Over the past 24 hours, they have withdrawn another 75.7 billion $SHIB tokens from exchanges.
Shiba Inu Exchange Netflow/CryptoQuant
CryptoQuant’s exchange netflow data confirms this. The metric measures the difference between exchange inflows and outflows and turns negative when the latter exceeds the former.
Exactly this scenario played out over the past day, with netflow showing a negative reading of 75.7 billion. This suggests that that was the net amount that traders withdrew from exchanges yesterday.
Notably, this pattern has persisted for a while now, highlighting the unrelenting accumulation effort from Shiba Inu investors. They continue to take advantage of the low price to move the token off exchanges to self-custody wallets for long-term holding.
This not only reduces selling pressure but also impacts the availability of the meme coin on exchanges. Additionally, it highlights the confidence among $SHIB holders that the token could recover from recent downtrends and target higher prices.
