Shiba Inu Death Cross Sparks Contrary Rebound Debate Above $0.00001

Shiba Inu may defy expectations again, as a typically bearish “death cross” on its chart could actually increase the chances of it rebounding above $0.00001.

Earlier this year, Shiba Inu surprised traders by reversing a bullish setup into a loss. Analysts now wonder whether this new bearish signal could also turn into a rebound.

Key Points

• A developing death cross is paradoxically raising expectations of a $SHIB rebound.
• $SHIB invalidated a bullish golden cross signal and dropped roughly 12%.
• Analysts are now questioning whether history could repeat itself in reverse amid a potential death cross.
• A successful reversal could send $SHIB toward the 200-day EMA at $0.00001018.

$SHIB Invalidates Classic Technical Signal

Shiba Inu’s recent price action underscores the unreliability of classic signals in the meme coin market. In mid-January, $SHIB printed a golden cross, as the 23-day simple moving average (SMA) crossed above the 50-day SMA, a normally bullish signal. However, instead of rallying, $SHIB sold off sharply, shedding about 12% of its value and invalidating the bullish setup.

Can Shiba Inu Replicate The Trend?

At the moment, the market is nearing the inverse pattern on Shiba Inu’s daily chart. The 23-day moving average is rolling over and approaching a break below the 50-day SMA, forming a death cross.

Although typically bearish, this signal may act as a contrarian trigger, similar to what played out earlier in the month. If this happens, $SHIB could target the 200-day EMA near $0.00001018, implying a potential 31.45% rally from its current level around $0.000007744.

Notably, the token briefly touched the $0.00001 level on January 5 before entering a sustained retracement. While a contrarian rally under the emerging death cross remains possible, additional signals also point to potential upside.

Massive Whale Accumulation of $SHIB

Recently, whales have steadily withdrawn large amounts of $SHIB from exchanges. Moreover, fresh data from CryptoQuant indicates that $SHIB’s exchange reserves declined from 82.56 trillion on January 17 to 82.11 trillion today, meaning nearly 450 billion $SHIB exited exchanges in less than two weeks.

This ongoing reduction in exchange supply suggests easing selling pressure and strengthens the case for a potential rebound.

Meanwhile, lead developer Shytoshi Kusama’s sudden return to social media has lifted sentiment around $SHIB. Notably, once the death cross fully forms, there is no certainty that the token will again move in the opposite direction, as it did mid-month. This time, the bearish signal might play out as expected.

Ultimately, $SHIB’s direction ultimately hinges on broader market conditions.