Those trading Shiba Inu (SHIB) and anticipating a significant windfall from a possible golden cross might need to exercise patience as obstacles appear to be in the way.
Towards the end of October, the much-anticipated bullish signal of a golden cross, where the 50-day simple moving average (SMA) crosses a longer-term moving average from below, seemed imminent. However, the positive momentum was not evident on the charts at the present time.
Is the Golden Cross for SHIB Facing a Delay?
The nervousness surrounding the U.S. election has dampened the spirits of SHIB bulls, at least in the short run. Following a drop below its crucial long-term trendline support, SHIB’s decline was halted at the 50-day SMA.
Although there was a subsequent recovery hinting at a potential golden cross with the 50-day SMA crossing over the 200-day SMA, this revival stalled at the intersection of the trendline resistance and the 200-day SMA.
The subsequent price decline saw SHIB plummeting by 12%, breaching the 50-day SMA. This move below the 50-day SMA signaled a temporary weakness in SHIB, posing yet another challenge to the anticipated Golden Cross.
It is essential for traders to monitor the key support levels at $0.000015 and $0.000014 in the short term. In case of a rebound, the bullish targets would be the 50-day SMA and the 200-day SMA.
Assessing Market Sentiment and Traders’ Positions
Top traders on Binance have largely maintained a bullish stance in recent days, with 60% of positions being net long.
However, the percentage of long positions slightly decreased to 58% recently. Simultaneously, the Open Interest (OI) rate dropped from $57 million to $38 million during the same period.
It appears that ahead of the U.S. elections, there has been a trend of de-risking. Surprisingly, despite the 12% drop, speculators have continued to exhibit a bullish outlook.
Moreover, significant funds have shown a positive stance on SHIB, evident from the consistent ‘buy the dip’ behavior during the recent dips in the crypto’s value.
Considering these patterns, coupled with SHIB’s burn rates, there are indications of favorable conditions for SHIB’s potential recovery.