Shiba Inu Price Poised for a Surprise 20% Rally Despite Death Cross
Shiba Inu’s price is drawing attention as analysts anticipate a potential rebound rather than a decline. Despite a bearish death cross—where the 50-day moving average falls below the 200-day moving average—technical indicators hint at a reversal.
Technical Indicators Signal a Possible Breakout
Historically, a death cross led to a 47% drop in SHIB’s price in mid-2023. However, the Relative Strength Index (RSI) is hovering above oversold territory, and the MACD histogram is turning positive, suggesting weakening selling pressure. Additionally, SHIB has formed a descending wedge pattern, a bullish structure often preceding price breakouts.
- Key Support: $0.00001266
- Immediate Resistance: $0.00001438
- Potential Upside Target: Above $0.00001690
Breaking resistance at $0.00001438 could accelerate bullish momentum, reversing SHIB’s recent downtrend. As of Wednesday, SHIB is up 4%, trading at $0.00001437.
Broader Market and SHIB Burn Fuel Optimism
SHIB’s price may rise further as the crypto market recovers, led by Bitcoin and Ethereum. Additionally, meme coins like Dogecoin, Pepe, and WIF gaining traction could push SHIB higher.
The SHIB burn rate has surged 18.21%, with 2.1 million tokens removed in the last 24 hours, reducing supply and potentially boosting demand.
Conclusion
Despite the bearish death cross, SHIB’s price action suggests a potential 20% rally rather than a steep decline. If key resistance breaks, the token could extend gains, fueled by technical strength, broader market trends, and increased investor confidence.
