Shiba Inu faces the risk of a Death Cross: Will SHIB continue to fall?

Shiba Inu (SHIB) is under pressure, falling over 10% in the last 24 hours and over 25% in the last 30 days. Momentum indicators show mixed signals, with RSI dropping sharply into the neutral zone and BBTrend turning slightly positive after a deep bearish move.

Meanwhile, technical analysis indicates the possibility of a death cross forming on the EMA lines, which could create the next bearish phase unless the bulls regain control.

As SHIB approaches key support levels, traders are closely monitoring to confirm a breakdown or signs of a reversal.

The RSI of Shiba Inu slips into the neutral zone: What will happen next?

The relative strength index (RSI) of Shiba Inu has fallen significantly, currently at 44.31, down from the threshold of 62.8 yesterday.

The sharp fall indicates an increase in selling pressure, pulling SHIB out of the bullish zone and back to the neutral zone.

This change may reflect short-term profit-taking after the recent price increase and mark a momentum shift within just 24 hours.

RSI SHIB | Source: TradingViewRSI, or Relative Strength Index, is a momentum indicator that measures the speed and magnitude of recent price movements on a scale from 0 to 100.

Indicators above 70 often indicate that an asset is in the overbought zone and may soon correct, while indicators below 30 signal oversold conditions and potential recovery. With the RSI of SHIB at 44.31, the token is currently in the neutral range, indicating hesitation among traders.

If the RSI continues to fall, it may indicate the next bearish trend, but if it stabilizes or reverses upwards, SHIB may attract interest and new buying before reaching the oversold zone.

BBTrend turns bullish after a deep fall

Shiba Inu BBTrend has risen to 0.54, recovering strongly from a negative level of -3.25 just three days ago.

This marks a potential shift in momentum, indicating that bearish pressure may be easing and initial signs of bullish strength are emerging.

Although this move is still modest, it reflects an improving sentiment as SHIB attempts to stabilize after the recent downturn.

SHIB BBTrend | Source: TradingViewBBTrend, or Bollinger Band Trend, measures the strength in the direction of price movement compared to the Bollinger Band. Values above 0 reflect bullish momentum, while values below 0 indicate a bearish trend.

The current BBTrend of SHIB is 0.54 indicating a weak upward trend but is increasing.

If it continues to rise, it could signal the beginning of a recovery phase, potentially attracting new interest from short-term traders.

SHIB Forms Death Cross: Weakening or Reversal?

The EMA lines of Shiba Inu are showing signs of weakening, with the potential for a death cross formation.

Death cross occurs when the short-term EMA crosses below the long-term EMA, often signaling a reversal to a bearish trend.

If this pattern is confirmed, the price of SHIB could fall to test the support level at $0.0000123.

The fall below this zone could accelerate bearish pressure, pulling the price down to $0.0000118.

SHIB Price Analysis | Source: TradingViewHowever, if SHIB attempts to regain upward momentum before the death cross is confirmed, a reversal could lead to a retest of the resistance level $0.0000134.

Breaking above this level will change short-term sentiment and could trigger additional rallies toward $0.0000147 and $0.0000160. These targets are only likely to occur if buying pressure returns and invalidates the current bearish setup.

When SHIB consolidates, traders need to closely monitor whether the EMA lines confirm a bearish signal or if the bulls will timely reverse the trend.

Vincent