Shiba Inu (SHIB) Faces Resistance After Local Death Cross Signals Bearish Momentum

Shiba Inu (SHIB) recently encountered resistance as a local death cross formed on the four-hour chart, where the 23-period moving average slipped below the 50-period one. This technical crossover triggered a 2.65% drop, pushing SHIB down from its attempt to break above a short-term structure near $0.00001194. The price has since slipped to around $0.0000118, reinforcing the significance of this resistance zone.

While death crosses are common in consolidating markets and not inherently alarming, the timing near a key resistance area made this one more notable. The rejection aligned with clustered moving averages, suggesting increased selling pressure at that level. Despite the bearish signal, the broader market structure remains neutral, with the 200-period simple moving average (SMA) still positioned above at $0.00001252.

Currently, SHIB is trapped between moving averages, hinting at indecision. Two possible scenarios emerge: a recovery where SHIB reclaims its short-term moving averages and targets the $0.000012 level, or a deeper pullback toward $0.00001107 support, a zone previously tested and likely to draw demand again.

Importantly, no major breakout, volume surge, or panic has been observed, suggesting that the current price action is more of a midrange rejection than a definitive trend reversal. This period of consolidation reflects broader crypto market behavior, where volatility is subdued and price moves remain range-bound.

Traders should watch for confirmation in upcoming sessions to determine whether this is a temporary setback or the beginning of a more extended downtrend. Until then, SHIB’s outlook remains technically neutral with a bearish bias, awaiting a clear move beyond current moving average thresholds.