Shiba Inu Forms First 4-Hour Death Cross in October

Shiba InuSHIB-1.31% Sees First 4-Hour Death Cross of October

Shiba Inu (SHIB) has registered a technical pattern known as a death cross on its 4-hour chart. This is the first time this chart signal has appeared on this timeframe during October.

A death cross occurs when a short-term trend indicator drops below a long-term one. In this case, SHIB's 50-period moving average (MA 50) crossed below its 200-period moving average (MA 200). Think of it like a runner losing momentum, which suggests short-term selling pressure is taking over.

Why Is SHIB Price Under Pressure?

This chart signal follows a challenging week for the popular token. SHIB experienced three consecutive days of price declines, dropping below the key $0.000005 level.

At the time of writing, SHIB had fallen 3.88% over 24 hours to trade at $0.000005015. Over the past seven days, the token is down 6.66%. Similar bearish crossovers also showed up on shorter timeframes earlier this month, including the 1-hour, 2-hour, and 3-hour charts.

Past performance of digital assets is not a guarantee of future returns. You can track live market data on Bitkub Market.

US Inflation Data Adds to Market Uncertainty

SHIB's price decline did not happen in isolation. The broader crypto market moved lower following fresh economic data from the United States.

The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose by a seasonally adjusted 0.6% for the month. This brought the 12-month inflation rate to 3.7%, which remains above the Federal Reserve's target.

Because inflation remains high, market participants expect central banks to maintain tight monetary policies. This economic backdrop often leads traders to take a more cautious approach toward higher-risk assets.

What Could Happen Next for SHIB?

While a death cross highlights recent downward momentum, it does not guarantee future price action. Traders are currently monitoring three possible scenarios:

• Bearish scenario: If selling pressure continues and SHIB stays below key technical resistance, the price could test lower support around $0.000004.
• Bullish recovery: If buyers step in and trading volume rises, SHIB could defend its current support, climb back above $0.000005, and potentially head toward $0.000006.
• Sideways consolidation: SHIB may trade in a tight range as short-term bearish indicators compete against earlier bullish signals on the daily chart.

Digital asset markets carry inherent price volatility. Traders should evaluate market conditions and risk factors carefully before making trading choices.