Shiba Inu’s hourly golden cross emerged following Powell’s dovish remarks and heightened market expectations for a September Fed rate cut.
SHIB/USD reached $0.0000135 after sharp buying and a 2,491% short liquidation, before entering a two-day profit-taking correction.
The daily SMA 50 and SMA 200 are converging, signaling the potential for either a bullish golden cross or a bearish death cross soon.
Shiba Inu recorded a significant technical signal on its hourly chart as the short-term moving average crossed above the long-term average. This golden cross, widely regarded as a bullish indicator, developed after strong buying activity emerged on Friday. The rally followed investor optimism triggered by Federal Reserve Chair Jerome Powell’s dovish tone during his speech at the annual Jackson Hole symposium in Wyoming.
Market participants began pricing in a potential interest rate cut at the Federal Reserve’s September meeting, contributing to renewed upward momentum across crypto assets. This shift in sentiment pushed Shiba Inu’s price to $0.0000135, a level last observed in mid-August. Traders responded to the rate cut signals by aggressively buying the dip, adding further strength to the SHIB/USD pair.
Short squeeze contributes to SHIB’s sharp rise
A sudden liquidation of short positions added to the bullish pressure on Shiba Inu. The token reportedly surged by 2,491% during a brief period as shorts were forcefully closed out. This spike in volume and volatility highlighted the market's sensitivity to macroeconomic indicators and how quickly technical setups can influence investor behavior.
While the hourly chart presented a bullish signal, the daily chart is approaching a critical juncture. The 50-day simple moving average and the 200-day moving average are drawing closer, indicating the potential formation of either a golden cross or a death cross. Both averages have flattened, showing no clear directional bias. Traders are closely watching this development as it could shape market expectations for Shiba Inu’s medium-term trend.
Past crossovers hint at a possible direction
Historically, Shiba Inu's last golden cross on the daily chart occurred in November 2024, which preceded a notable price increase to $0.00003344. In contrast, the previous death cross in February led to a decline toward the $0.00001 range in the following months. Currently, Shiba Inu is trading at $0.00001276, reflecting a 3.2% drop in the past 24 hours and a 3% decrease over the past week.
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