Dog-themed cryptocurrency Shiba Inu (SHIB) has recently triggered a technical indicator that traders look for to indicate positive momentum: the golden cross. Specifically, an hourly golden cross has formed, sparking renewed optimism for SHIB's price.
A golden cross happens when a short-term moving average, usually the 50-period MA, crosses above a long-term moving average, like the 200-period MA. In the context of Shiba Inu's hourly chart, this implies that short-term momentum outweighs long-term pressure, an early signal that a trend reversal could be on the horizon.
Golden crosses are traditionally interpreted as bullish indicators, frequently anticipating higher price movement.
While a golden cross on the daily or weekly chart holds more long-term weight, even an hourly cross can be an early indicator of market sentiment shifting.
Shiba Inu's price stalled after reaching highs of $0.00003324 in December 2024. The SHIB price fell to a low of $0.00001029 on April 9, after which it began to rebound.
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While bulls have passed the initial test by pushing SHIB price above the daily SMA 50 at $0.00001344, SHIB still faces resistance in the range of $0.00001764 and $0.0000182, which is at the daily SMA 200, before proceeding higher to targets such as $0.00002 and $0.00003.
Attention shifting to altcoins
Meanwhile, as Bitcoin (BTC) reached new highs earlier this week, attention is shifting to alternative cryptocurrencies, also known as altcoins. Some argue that broader macroeconomic risks, such as rising U.S. yields and a stronger dollar, could cause volatility, particularly for altcoins.
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Bitcoin reached record highs of $112,000 on Coinbase and was hanging just under $109,000 early Friday, with profit-taking causing a decline, as is typical after upward moves.
Shiba Inu was not immune to market profit-taking, trading down after reaching highs of $0.00001605 early Friday following three days of gains. SHIB was down 3.78% in the past 24 hours to $0.0000147, with a 5.26% drop in the last hour.
According to CoinGlass data, $470.45 million of cryptocurrency have been liquidated in the last 24 hours across various assets.
