Home DeFi & NFT Shiba Inu’s Golden Cross Still in Play Despite Market Turbulence

Shiba Inu’s Golden Cross Still in Play Despite Market Turbulence

Shiba Inu

Shiba Inu (SHIB) continues to show signs of resilience as it navigates recent market turbulence, which was spurred by a Wall Street Journal report regarding Tether, the issuer of the USD-pegged stablecoin USDT. This news led to a correction across the broader cryptocurrency market, affecting various assets, including Shiba Inu.

Following the report, Shiba Inu saw a significant drop, plunging from $0.00001740 to $0.00001646. However, the asset has since regained some ground, currently trading above the $0.0000165 mark.

Golden Cross Projection Remains Valid

Despite the recent volatility, the projection of a golden cross on Shiba Inu’s chart remains intact. A golden cross occurs when a short-term moving average (MA) crosses above a long-term moving average, and it is typically interpreted as a bullish signal. This pattern often suggests a potential price increase in the near future.

As it stands, Shiba Inu is trading at approximately $0.00001684, remaining within the 50-day moving average—a key component of the golden cross formation. This indicates that, despite recent challenges, the technical indicators are still supportive of a potential upward movement.

Will Shiba Inu Maintain Its October Rally?

As the impact of the Tether report fades, questions arise about whether Shiba Inu can sustain its rally into November. Historical data from CryptoRank suggests that November has not traditionally been favorable for Shiba Inu. Since its inception, the asset has seen three Novembers, and the results have been mixed.

In November 2021, Shiba Inu ended the month with a notable loss of 29.6%. The following year, November 2022 brought another decline, this time by 24.93%. Interestingly, November 2023 was an exception, as SHIB experienced a modest gain of 6.62%. Overall, Shiba Inu has an average decline of 15.9% in November, raising concerns that it could face another double-digit loss next month.

However, recent developments—such as the validity of the golden cross projection and a surge in Shibarium activity—may offer a glimmer of hope for SHIB investors.

Shibarium Activity on the Rise

Last week, Shibarium, Shiba Inu’s layer-2 network, experienced a significant uptick in activity. The number of active accounts on the network surged by 1,557%, reaching 26,237 as of October 23. This surge contributed to an increase in Shibarium’s transaction volume, which climbed to 3.24 million. On October 26, this figure peaked at 4.76 million, though it has since decreased to about 700,000 at the time of writing.

Despite this recent decline, Shibarium’s current transaction volume still exceeds what was observed earlier this month and in previous months. This increase in activity could bolster investor confidence in Shiba Inu, potentially driving up demand for its ecosystem tokens, including SHIB.

Conclusion: Looking Ahead

In conclusion, while Shiba Inu faces challenges in the wake of market corrections and historical trends that suggest potential declines in November, the technical indicators and recent activity on the Shibarium network offer reasons for cautious optimism. The persistence of the golden cross projection, alongside increased user engagement in the Shibarium ecosystem, could provide a foundation for Shiba Inu to navigate the upcoming month more favorably than past Novembers.

Investors will be watching closely to see if Shiba Inu can sustain its momentum and leverage these positive developments to counteract any seasonal downturns. The coming weeks will be crucial in determining the asset’s trajectory and overall market sentiment.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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