Shiba Inu (SHIB) Flashes Death Cross. Here’s The Implication

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-6a57f7be-8f6e-4deb-ae2c-5477f86653a5"]{width:320px;height:100px;} } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-6a57f7be-8f6e-4deb-ae2c-5477f86653a5"]{width:728px;height:90px;} }

Shiba Inu has drawn renewed attention after technical indicators revealed the formation of a death cross on its daily chart over the weekend. A death cross occurs when the 50-day moving average falls below the 200-day moving average, a signal that is generally interpreted as pointing to declining momentum and the potential for a price retracement.

Second Death Cross in 2025

This is the second time the pattern has appeared on Shiba Inu’s chart this year. The first instance emerged in February and was followed by months of weak performance that eventually drove the token’s value down to the $0.00001 level in June.

The timing of the latest development has caught some market observers by surprise. Only a month earlier, Shiba Inu formed a golden cross, which is usually taken as a bullish indicator. That event initially lifted investor expectations for a stronger rally. However, the positive sentiment proved short-lived as broader market conditions turned unfavorable.

September has historically been one of the more challenging months for the cryptocurrency sector, and this year has been no exception. Ongoing macroeconomic uncertainty, coupled with seasonal weakness, has added pressure on major digital assets. These factors reduced the impact of the golden cross and contributed to renewed selling activity in Shiba Inu.

Despite these headwinds, the token briefly advanced to $0.000013 on August 29 before losing momentum in early September as the overall market trend shifted downward.

With conflicting signals from recent chart patterns, traders are focused on Shiba Inu’s near-term movement. If the token manages to break above its daily moving average, bullish participants may aim for resistance levels between $0.000014 and $0.000016

On the other hand, if downward pressure intensifies, price action could mirror the decline that followed February’s death cross, making $0.00001 an important support level to watch.

As of the latest update, Shiba Inu is priced at $0.00001291, reflecting a 4.03% increase over the past 24 hours and a 6.58% gain for the week. Since the beginning of September, the asset has advanced by 2.87%, bringing its average monthly performance to 6.94%.

Market Activity and Token Burns

Trading activity has also shown notable growth. Shiba Inu’s 24-hour trading volume rose by 39%, reaching $143.94 million. This uptick suggests that interest in the token remains strong despite the uncertain technical outlook.

At the same time, the project’s burn rate recorded a sharp increase. Over the past 24 hours, token burns surged with approximately 1.3 million SHIB permanently removed from circulation across nine transactions. This mechanism, while relatively small in scale compared to the total supply, continues to be monitored by the community as a long-term support factor.

The reemergence of a death cross on Shiba Inu’s chart has revived concerns about the token’s immediate direction. While technical patterns point to potential downside risk, recent trading volume and increased token burns highlight sustained interest from market participants

Disclaimer***:*** This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.