SHIB Golden Cross and Short Squeeze Drive 6.3% Price Surge Amid Dovish Fed Outlook

Shiba Inu (SHIB) formed a golden cross on its hourly chart on August 25, 2025, as the 50-period simple moving average (SMA) crossed above the 200-period SMA, signaling potential short-term bullish momentum. This event coincided with Federal Reserve Chair Jerome Powell’s dovish comments at the Jackson Hole symposium, which heightened market expectations for a September rate cut and improved risk appetite across crypto markets. The technical signal, combined with growing short-position liquidation, intensified buying pressure and drove SHIB’s price to $0.0000135, although it later experienced two days of profit-taking, pulling back to around $0.00001276 [1].

The golden cross appeared after a surge in short-liquidation activity, with reported short squeeze events reaching a 2,491% increase during the spike, highlighting the volatile nature of leveraged positions in altcoins. The buying pressure was further amplified by the anticipation of Fed easing, as traders positioned themselves for potential gains in speculative assets. The convergence of the daily 50-day and 200-day SMAs now suggests the possibility of a larger golden cross or a death cross in the near term, which could confirm or negate the broader trend [1].

Historically, golden crosses have been followed by price rallies, as seen in November 2024 when SHIB climbed to $0.00003344 after a similar signal. Conversely, a death cross in February 2025 led to a decline toward $0.00001. The current flatness of the moving averages indicates a period of indecision, with no clear directional bias until one of the averages moves decisively above or below the other [1].

Analysts from 3CQS Crypto Screener noted that SHIB exhibited elevated volatility scores on both 15-minute and 24-hour intervals, making it one of the most active assets in the short term. This volatility, combined with the technical signal, attracted traders seeking to capitalize on potential upward momentum. However, they emphasized that while golden crosses are useful tools, they should not be used in isolation and must be evaluated alongside volume patterns and broader market conditions [1].

Traders are advised to use strict risk management, including stop-loss orders, due to the asset’s high volatility and potential for sharp reversals. While the golden cross may indicate a favorable entry point, the sustainability of SHIB’s recent price surge remains uncertain without continued volume and macroeconomic support. Monitoring the daily SMA convergence and key macroeconomic cues will be essential for assessing the durability of the trend [1].

The interplay between technical signals and macroeconomic sentiment underscores the dynamic nature of the crypto market. SHIB’s response to Powell’s dovish remarks and the subsequent short squeeze exemplifies how external factors can rapidly influence price action. Investors are encouraged to maintain a balanced approach, using both technical and fundamental analysis when making trading decisions [1].

Source: [1] 3CQS Crypto Screener (https://www.3cqs.com/crypto-screener/)