Shiba Inu (SHIB), the dog-themed meme coin, has slipped into troubled territory capable of triggering panic among market participants. According to data, SHIB’s 9-day moving average has slipped under the 26-day moving average, forming a "death cross."
Trading volume jumps despite SHIB death cross
Notably, a death cross formation is a technical signal that traders do not want to see. It typically shows up when the market is weakening and a rally is over.
The formation of a death cross on Shiba Inu’s three-hour chart could suggest that selling pressure might kick in for the meme coin.
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The cross comes following SHIB’s decline below the $0.00001223 support level on the market. The development and the formation of the death cross confirm the meme coin’s bearish twist. This could trigger a free fall in price for SHIB, except for market momentum shifts.
As of press time, the Shiba Inu price was changing hands at $0.00001214, representing a 0.68% decline in the last 24 hours. The meme coin crashed from an intraday peak of $0.00001244 to its current levels.
Despite the decline and death cross formation, Shiba Inu investors have not panicked yet and are actively engaging the asset. Trading volume is up by a significant 17.25% at $221.76 million. This development marks a positive catch as it could catalyze the token in a push for a possible reversal.
Shiba Inu burn rate plummets, Raising supply concerns
However, the Shiba Inu community needs to take steps to support the asset. In the last 24 hours, the ecosystem’s deflationary mechanism has crashed by over 98% as only 223,914 tokens were sent to dead wallets. This is coming less than 48 hours after the burn rate climbed by over 1,000%.
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The drop in this critical metric could substantially increase selling pressure and a further price drop. If ecosystem bulls do not act, Shiba Inu could slip and retest the $0.00001165 support level.
Until a significant rebound occurs, Shiba Inu remains at risk of adding a zero to its price.
