Shiba Inu Death Cross Fuels Debate Over Potential Rebound Above $0.00001
Shiba Inu (SHIB) is forming a death cross on the daily chart as the 23-day SMA approaches a cross below the 50-day SMA. Historically a bearish signal, this developing death cross is paradoxically prompting some analysts to expect a contrarian rebound — similar to SHIB’s mid-January price action when a golden cross failed and the token fell about 12%. If a reversal occurs, SHIB could target the 200-day EMA near $0.00001018, implying roughly a 31% rally from current levels (~$0.000007744). Supporting the bullish case, on-chain data from CryptoQuant shows exchange reserves falling from 82.56 trillion SHIB on January 17 to 82.11 trillion today (about 450 billion SHIB withdrawn), indicating reduced selling pressure. Positive sentiment was also lifted by lead developer Shytoshi Kusama’s return to social media. However, the article cautions that the death cross may still play out as a normal bearish signal and that SHIB’s direction will depend on broader market conditions. This content is informational and not financial advice.
Neutral
The article presents mixed signals. Technicals show a developing death cross (bearish), which historically suggests downward pressure; however, a recent contrary move (golden cross failure followed by a rebound narrative) has led some analysts to expect a contrarian rally. On-chain data—exchange reserves dropping by ~450 billion SHIB—reduces immediate selling pressure and supports a possible bounce toward the 200-day EMA (~$0.00001018). Positive sentiment from developer activity adds short-term support. Offsetting factors include the reliability of moving-average signals in meme-coin markets (they can fail) and dependence on broader crypto market trends. Short-term implication: elevated volatility and a binary outcome — either a bounce (short-covering/long entries) or continuation lower if the death cross confirms. Trading strategies should consider tight risk management, watching exchange reserves, daily SMA cross confirmation, and broader market risk appetite. Long-term implication: unless fundamental adoption or sustained buying persists, MA cross signals and macro direction will likely dictate trend—so impact is uncertain beyond the medium term.