A golden cross has recently appeared on Shiba Inu's hourly chart, raising expectations of a bullish reversal.
A golden cross happens when a short-term moving average (such as the 50 SMA) crosses above a long-term moving average (such as the 200 SMA), signaling potential upward momentum. On the hourly time frame, this crossover suggests that buyers may be regaining strength in the short term.
The sudden signal hints at the potential of a bear trap, where bearish traders are lured into short positions right before a sharp price reversal upward, forcing liquidations and fueling further gains.
Still, caution remains key. While the hourly golden cross is a positive indication, SHIB must confirm the breakout by sustaining above key resistance levels. Without sufficient follow-through, the rise may dissipate as swiftly as it appeared.
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On the macroeconomic front, investors will be looking for more insight into the U.S. economy on Wednesday morning, when the Bureau of Labor Statistics releases May's consumer price index data. Dow Jones economists predict a 0.2% month-over-month increase, with headline CPI up 2.4% from the previous year. A hot report could spook investors who are already concerned about inflationary pressures.
SHIB price action
At press time, SHIB was up 1.72% in the last 24 hours to $0.0000132, having reached a high of $0.00001353 following two straight days of gains since June 8.
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Shiba Inu has largely rebounded since its drop to lows of $0.0000119 on June 5, but its price is consolidating below the daily SMA 50 of $0.00001392 as markets anticipate its next move.
Markets appear to be in a holding pattern as traders await new triggers, particularly U.S. inflation data, which could shift the Fed's outlook. Stickier inflation could delay expected rate cuts and impact risk assets, but the market picture remains positive.
If profit-taking picks up or the Federal Reserve implies a slower pace of rate decreases, it might pose a potential headwind for crypto prices.
