Shiba Inu is under renewed selling pressure after a death cross formed on the 2-hour SHIB/USD chart on February 23. The bearish technical signal has cast doubt over any near-term price recovery, with the meme coin now trading below key moving averages and battling to hold a critical support level.
The death cross occurred when the 200-period simple moving average (SMA) crossed above the 50-period SMA, a classic signal indicating that short-term momentum is weakening relative to the longer-term trend. This follows a similar cross that appeared on the 1-hour chart as early as February 19, suggesting the bearish signal is gradually working its way up the timeframe chain.
What the Death Cross Means for SHIB
Technical traders watch death crosses closely. When the shorter-term moving average falls below the longer-term one, it typically confirms that selling pressure is dominating the market. For SHIB, the pattern developed immediately after a sharp 4.2% red candle printed on the 2-hour chart on Monday, accelerating the crossover.
Critics of the indicator point out that it is inherently lagging. It reflects price action that has already occurred rather than predicting what comes next. In SHIB’s case, the cross formed after the decline was already underway, which some analysts argue limits its predictive value.
Still, others maintain that the death cross does more than confirm existing trends. Historical precedent shows that once the signal appears on lower timeframes and migrates to higher ones, the 4-hour, daily, or weekly charts, sustained bearish momentum often follows. If SHIB continues its current trajectory without a meaningful recovery, that migration becomes increasingly likely. Should that occur, the bearish case strengthens considerably.
For now, SHIB trades below all major moving averages. Any upward price movement under these conditions would likely be treated as a relief rally rather than a genuine trend reversal.
SHIB Tests $0.0000060 Support After Sharp Decline
The death cross triggered an immediate sell-off. SHIB dropped to the $0.0000060 support zone in the early hours of Monday. Buyers responded quickly, pushing the price back up to $0.00000614. However, the recovery was short-lived.
Broader macroeconomic uncertainty continued to weigh on the cryptocurrency sector. Risk-off sentiment returned, and SHIB was dragged back down to the $0.0000060 support zone once more.
This is not the first time SHIB has tested this zone. On February 12, buyers stepped in at similar levels and staged a meaningful rebound. Whether history repeats itself depends on whether demand at this level remains strong enough to absorb ongoing selling pressure.
At the time of writing, Shiba Inu trades at around $0.00000592, down 1.56% in the last 24 hours.
