Shiba Inu (SHIB) has seen its fair share of ups and downs in recent weeks, but one technical indicator that traders have been eagerly anticipating—the golden cross—has faced a significant setback. A golden cross, a widely-followed bullish signal in technical analysis, occurs when a short-term moving average (like the 50-day) crosses above a longer-term moving average (such as the 200-day), signaling potential for price momentum to the upside. Traders were expecting the golden cross to materialize toward the end of October, but the much-anticipated bullish pattern has hit a delay due to recent market movements.

A Setback for SHIB’s Golden Cross

In late October, Shiba Inu appeared poised for a golden cross. The 50-day simple moving average (SMA) was nearing a crossover with the 200-day SMA, which typically signals a shift toward bullish conditions. However, the bullish momentum stalled after the coin experienced a significant price rejection near the 200-day SMA, a critical resistance level.

This price rejection came at a time when SHIB was already struggling to maintain its upward trajectory. After breaking below a key long-term trendline support, SHIB’s price briefly found support at the 50-day SMA, teasing the possibility of a golden cross. Yet, despite this early recovery, the coin’s price faced another downturn, falling 12% after encountering resistance at the trendline and the 200-day SMA.

At press time, SHIB had dropped below the 50-day SMA, which has caused concern for traders hoping for a quick bullish reversal. This development has temporarily derailed the potential for a golden cross, leaving traders to reassess their positions.

Key Levels to Watch

The recent price drop highlights the key levels that SHIB traders will need to keep an eye on in the short term. The 50-day and 200-day SMAs are critical technical indicators that can determine whether SHIB resumes its bullish rally or continues to struggle. At this point, the critical support levels to watch are $0.000015 and $0.000014. If SHIB fails to hold above these levels, further downside could be expected in the short term.

On the other hand, if the coin can regain its footing above these support levels, it might still have the chance to bounce back and potentially set up for a golden cross at a later date. Traders will likely be looking for a successful break above the 200-day SMA to confirm that the bullish momentum is back on track.

Market Sentiment: Mixed but Bullish

Despite the recent setbacks, market sentiment around Shiba Inu remains generally optimistic. On Binance, one of the largest cryptocurrency exchanges, traders have maintained a bullish outlook on SHIB. Data shows that long positions continue to dominate, although the percentage of long positions has slightly dropped from 60% to 58%. This dip in long positions could be attributed to cautious trading ahead of potential market volatility, especially with the U.S. elections looming.

Moreover, Open Interest (OI) in SHIB has decreased from $57 million to $38 million in the past few days, indicating that some traders are reducing their exposure amid uncertain market conditions. This cautious stance highlights that while SHIB traders are still generally bullish, there is a level of risk management taking place.

Institutional Interest and SHIB’s Burn Rate

A particularly interesting trend is the continued interest in SHIB from large investors and funds. During SHIB’s recent price drop, there was a noticeable “buy the dip” trend among large funds, signaling confidence in the altcoin’s longer-term outlook. This institutional support, along with the ongoing burn rate of SHIB tokens, suggests that the cryptocurrency still has strong potential for recovery.

SHIB’s burn rate—the rate at which tokens are taken out of circulation—remains an important factor for its long-term value proposition. If this burn rate continues to rise, it could help drive scarcity and, in turn, support higher prices if demand remains stable or grows.

What Should Traders Do Now?

Given the current market conditions and the delayed golden cross, SHIB traders are in a holding pattern for now. While the immediate outlook may not be as bullish as hoped, the underlying sentiment remains positive. Support at key levels could set the stage for a rebound, and with continued institutional interest and healthy burn rates, SHIB’s long-term prospects are still strong.

For now, traders should monitor key price levels—particularly the 50-day and 200-day SMAs—and be prepared for potential volatility as the market adjusts to short-term challenges. With the U.S. election uncertainties and broader market conditions affecting crypto prices, SHIB’s immediate future will depend on how it reacts to these pressures.