Cryptocurrency prices have not brought any joy in recent days, and the famous meme coin Shiba Inu (SHIB) is no exception. Losing nearly 20% since the January high of $0.000025 is painful to say the least, but as the price chart and the formations on it for SHIB show, this could be just the beginning of bad luck for the popular cryptocurrency.

The first thing to note is the death cross that has formed on the 12-hour price chart of the Shiba Inu symbol. A death cross is a pattern in which two moving averages intersect, but the smaller average is falling and the larger one is rising. In our case, these two moving averages are 50 days and 200 days, which are popular in the cryptocurrency market.

After the ominous pattern appears, SHIB price The stock immediately continued to decline, losing over 11% in just the next day and a half. Right now, the price action of the meme coin is more like a falling knife than something a sober investor would want to invest his money into.

SHIB is trading at $0.00002, literally on the verge of missing the most important psychological and technical price point. If the price collapses, the next stop point could be $0.00001857, another 7.33% lower.

Two Tracks for Shiba Inu (SHIB)

Thus, there are actually two scenarios for SHIB, neither of which can be considered positive in the short term. In the first case we see Shiba Inu symbol Maintain current levels, with neither bears nor bulls determining the winner.

In the second scenario, buyers will not enter the trade until SHIB's price reaches ridiculous "oversold" levels, which may be in the territory of last year's sell-offs.

However, if we try to find something positive, we can say that the death cross formed in a lower time frame, so it will not last long enough.