Shiba Inu (SHIB) Broken? Meme Coin Falls Despite Golden Cross

Shiba Inu (SHIB) is facing a new wave of pressure despite the recent emergence of a traditionally bullish technical indicator. The token has dropped even though a golden cross — a pattern often linked to upward momentum — formed on the daily chart recently.

A golden cross happens when a short-term moving average goes above a longer-term moving average. In SHIB’s case, the 23-day moving average has crossed the 200-day, which suggests the potential for a bullish trend reversal. But so far, the price action has not shown the expected result.

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Right now, SHIB is trading near $0.00001296, down over 5% in recent sessions. The decline comes after a short rise that saw the token reach highs around $0.000014 before hitting a resistance point and dropping.

SHIB is not able to hold gains above the crossover zone, which is making traders worry that the golden cross might be sending out a false signal because of the overall uncertainty in the market.

Technical support is sitting right around $0.00001274, which is in line with the 23-day moving average. If it doesn’t hold above this level, it could lead to more selling, with the next support level being around $0.00001107. The price is still holding steady at around $0.00001360, which is the lowest it has been in a while.

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The overall situation with meme coins is still a bit uncertain, with market participants keeping a close eye on things like trading volume, trend validation and the overall risk appetite across digital assets.

Golden crosses are usually seen as a good sign for the market, but they can actually be less important when investors are feeling uncertain or when there are a lot of short-term bets being made.