The Shiba Inu coin price has crashed and is about to form a high-risk pattern that could fuel the downside in the next few weeks. SHIB token hit $0.00003340 in December and fell 40% to the current $0.00002. So, is Shape Coin a good buy as a Death Cross boat?
Shiba Inu, Coin Technical Analysis: Death Cross pattern is approaching
The daily chart shows that SHIB price peaked at $0.00003340 and then retreated to the psychological point at $0.000020.
Technicians suggest that the chip coin has more of a downside. It has formed what looks like a head and shoulder pattern, which often leads to more downside in the long term.
The currency is about to form a death cross pattern, which occurs when the 50-day and 200-day weighted moving averages (WMA) cross each other. Inter-average spread has continued to narrow, and currently stands at just 3.1%, down from 10% a few days ago.
The death cross is often viewed as one of the riskiest chart patterns in the financial market. This is because it is a sign that the bears may beat the bulls, resulting in more downside.
The coin also formed a double chart pattern at $0.00002490. Like the death cross, this is also an extremely common bearish chart pattern.
The price of the Shiba Inu also moved to the regeneration level of 61.8% who watched closely. Therefore, there is a risk that the currency will have a strong downward collapse in the next few weeks. If this happens, the next price to watch will be $0.00001850, its swing low on December 20.
A drop below the support level would indicate more downside, perhaps to the 78.6% point at $0.00001568, a drop of 23% below the current point.
The Shiba Inu forecast will remain bearish as long as it is below the double point at $0.00002490.
Why did ShipCoin crash?
There are two main reasons why the price of the Shiba Inu has collapsed in the past few months. Firstly, it has declined as investors rotated to the newer and older memi coins. Recently, they moved to official Trump and Melania coins that soared ahead of the inauguration. Some cash moved from older meme tokens to these as investors looked for solid gains.
A good example is daily volume numbers. Shipp had 24-hour volume of $163 million, well below Trump’s $169 million of $4.45 billion and $169 million. Melania Trump memes reached a daily volume of $215 million.
Second, while Shibarium is growing, data shows that the fees collected have continued to decline. Completed Shibarium transactions jump For over 847 million, an impressive number for a recently launched network.
The average transaction fee decreased by 0.000064 bones from 0.0003 bones in the previous month. At the same time, the total bone fees collected by the network in the year of Thos continued to amount to less than 400 bones per day.
These charges are important because they indicate whether the Layer-2 network is growing or not. It is also crucial because its effect on the burning rate of Shibarium is reduced.
Read more: ‘I don’t know much about it’: President Trump on meme coin launch
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