Shiba Inu (SHIB), the popular meme-inspired cryptocurrency, is on the verge of experiencing a golden cross on its price chart. This would be the first golden cross for SHIB since December 2023.
On the daily chart of SHIB, two moving averages, the 50-day and 200-day moving averages, are converging. This convergence is a significant development following SHIB’s breakout from a six-month decline. After the breakout, the price of SHIB rose by 57% over eight days, followed by a decline of 27% over six days. Eventually, the price bottomed out at $0.00001548 on October 3. Subsequently, the price increased by 19.78% over 17 days, and the moving averages rounded each other.
A similar occurrence took place at the beginning of last year when SHIB’s price rose by almost 48% in the following two weeks. Prior to that, the curves crossed to form a death cross on July 17, resulting in a 148% increase in the price of SHIB, with the meme-inspired token even reaching a peak of 475%.
While it is important to note that the outcome of a golden cross is not guaranteed to be the same, historical data suggests that SHIB has shown growth after previous golden crosses, although not consistently. For instance, after the February 2023 golden cross, the price of SHIB rose by 25% in one day, only to fall by 28% a few weeks later when the curves inverted once again.
Therefore, while there is no certainty about the outcome of a potential golden cross for SHIB, the past performance of the cryptocurrency indicates a possibility of growth, albeit with fluctuations. Traders and investors will closely monitor the situation to determine the potential scenarios and make informed decisions regarding their SHIB holdings.