Shiba Inu erased last week's gains due to declines in major cryptocurrency prices. As of press time, SHIB is down 10% for the week.
Over the past two days, Shiba Inu has experienced significant selling pressure in sync with the broader cryptocurrency market. Selling across risk assets has swept through the crypto market as concerns over inflation have unsettled nervous investors. The decline in cryptocurrencies has coincided with drops in stock and bond markets.
Shiba Inu has been declining since reaching a high of $0.00000668 on May 11, falling on four of the five days since.
As the weekend approaches, selling intensified as traders bet that the Fed may raise rates rather than cut them, following a series of strong CPI and PPI data releases earlier this week.
Under selling pressure, a death cross signal has appeared on Shiba Inu’s short-term chart, particularly on the 2-hour chart. The 50-day moving average has dropped below the 200-day moving average, forming a bearish death cross signal.
SHIB loses primary support
This decline caused Shiba Inu to fall below its 50-day moving average, a level it had held above since mid-April. Meanwhile, its price also dropped below the $0.000006 threshold.
The 50-day moving average has been crucial for Shiba Inu’s price movement, as it limited price gains from mid-January to mid-March until Shiba Inu finally broke above it. Nevertheless, in April, SHIB struggled to hold above this level due to intense competition between bulls and bears.
Shiba Inu made a breakthrough in late April, closing above the 50-day moving average for several consecutive days.
Shiba Inu (SHIB) faced resistance at $0.0000067 before declining. As of press time, SHIB is down 1.37% over the past 24 hours to $0.000005838, having broken below the $0.000006 level. Over the next few trading days, SHIB’s momentum indicators are approaching oversold territory, and its ability to reclaim the 50-day moving average will be closely watched.