Shiba Inu [SHIB] has attracted the interest of the market after forming a golden cross on its daily chart recently.
Although this technical signal usually indicates a bullish trend, SHIB’s price has experienced a significant downturn, sparking discussions about its upcoming support levels.
Let’s delve deeper into the factors impacting SHIB’s price and the potential direction it might take.
Shiba Inu’s Golden Cross Formation
On the daily SHIB/USD chart, a golden cross occurred where the 50-day moving average crossed over the 200-day moving average, suggesting a potential bullish breakout.
However, following its peak at $0.00002622, Shiba Inu witnessed a considerable pullback, dropping to $0.00002453, marking a 4.07% decline in the past day.
The Bollinger Bands pointed to increased volatility, indicating that further downside was possible if selling pressure persisted.
At the same time, the 50-day and 200-day moving averages, located at $0.00001902 and $0.00001833 respectively, might serve as crucial support areas in case of further declines.
Expansion of Network and On-Chain Activity
Data from Santiment revealed a surge in SHIB’s network growth in recent weeks, reaching 6,612 new addresses at its peak before retreating to 4,612.
This growth signified a rise in interest in the asset, potentially aiding in stabilizing its price. However, the network’s ability to maintain this growth will be vital in upholding investor trust.
The spike in network activity coincided with SHIB’s recent price surge, indicating that new participants may have contributed to the upward movement.
In the future, a decrease in network growth could jeopardize SHIB’s chances of reaching higher price levels.
Crucial Support Levels to Monitor
With SHIB struggling to maintain a position above $0.00002450, the next significant levels to monitor include the psychological barrier at $0.00002300 and the 50-day moving average at $0.00001902.
If these levels fail to hold, a decline to $0.00001833 or below could be in the offing. Conversely, a reclaim of $0.00002600 would indicate a resurgence of bullish momentum.
While Shiba Inu’s Golden Cross sparked optimism within its community, the subsequent price correction underscored the hurdles SHIB must overcome to sustain its positive momentum.
The asset’s network expansion and support thresholds will be pivotal elements to observe as the market manages increased volatility.
Currently, the focus remains on SHIB’s ability to retain its key support areas and draw renewed interest from buyers.