SHIB (Shiba Inu) Faces First Weekly Death Cross as Bears Take Control

Shiba Inu (SHIB) is heading into uncharted territory as its weekly moving averages set up for what could be the token's first-ever death cross. The 50-week moving average has started turning south and looks ready to slice through the 200-week MA in the coming weeks—a classic bearish signal that's got traders on edge.

This isn't your typical daily death cross that happens all the time. We're talking about a weekly formation here, which is way more significant. When the shorter 50-week average drops below the longer 200-week line, it usually means the bears are firmly in control and momentum is shifting downward. For SHIB, this would be a historic first, making it an even bigger deal for anyone holding the token.

The timing couldn't be more interesting. While daily death crosses pop up regularly across crypto markets, weekly ones are rare beasts that often signal deeper trouble ahead. They typically come with extended periods of weakness or sideways action, especially when trading volume starts drying up and sentiment turns sour.

What This Means for Shiba Inu (SHIB) Holders

Here's the thing about death crosses—they don't always lead to immediate crashes, but they're definitely not good news. In traditional markets, these formations often coincide with prolonged weakness or boring sideways trading that can last for months. The crypto world can be different though, with sentiment changing faster than you can say "diamond hands."

For SHIB specifically, this death cross suggests more consolidation or downside pressure unless the bulls can mount a serious comeback soon. The key question is whether buyers will step up to defend the token or if we'll see the pattern complete and potentially trigger more selling.

Crypto markets have a habit of defying technical analysis, so even a confirmed death cross doesn't guarantee doom and gloom. But it's definitely something to keep an eye on, especially given that SHIB has never seen this pattern before on the weekly timeframe.

Key Levels to Watch for SHIB

The $0.00001 level has been SHIB's go-to support zone throughout 2024, and it's likely to get tested again if this bearish pattern plays out. This price point has held up well during previous dips, with bulls consistently stepping in to defend it. If SHIB can hold this level despite the death cross threat, it might set up for a potential bounce.

On the flip side, if the death cross confirms and SHIB breaks below this crucial support, things could get messy fast. The broader crypto market sentiment will play a huge role here—if Bitcoin and other major coins start struggling, SHIB could face additional pressure.

But here's the interesting part: if SHIB manages to find a bottom around current levels, even with the death cross in play, it could potentially rally hard toward its 2024 highs of $0.000045. That's the beauty and curse of crypto markets—things can flip from bearish to bullish in a heartbeat.

At press time, SHIB was trading at $0.00001184, up 0.83% in the last 24 hours. While that's barely a blip on the radar, all eyes are on how the weekly charts develop over the next few weeks.