Shiba Inu is a meme-inspired cryptocurrency that has gained a significant community following. It competes with other canine-themed coins like Dogecoin in the niche meme coin segment of the crypto market.
The developers behind Shiba Inu have been working to build new features and utilities for the project’s community. A major initiative was the launch of Shibarium, a layer-2 scaling solution designed to improve transaction speeds and lower fees.
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However, since launching on the mainnet, Shibarium has not yet had a noticeable positive impact on Shiba Inu’s price performance. The price of SHIB has formed a technical pattern known as a “death cross” on its short-term chart amidst a recent slump.
Is another sell-off imminent for Shiba Inu?
A death cross occurs when a security’s short-term moving average crosses below its longer-term moving average, signaling the potential for a major selloff. For SHIB, its 50-period moving average crossed below its 200-period MA.
However, death crosses can be lagging indicators, meaning much of the selling may have already occurred before the crossover happened. SHIB remains well off its all-time highs from 2021 after declining significantly over the past year.
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Some analysts think further downside could be in store given the decisively bearish signal. But others warn against becoming overly bearish based on the death cross alone. For now, SHIB continues trading in its recent range of $0.000008000. Whether the death cross sparks a breakdown or proves to be a lagging indicator remains to be seen.