Shiba Inu Coin Plunges 40%, Death Cross Looms

The Shiba Inu coin (SHIB) has experienced a significant price decline, with the token dropping by approximately 40% from its peak in December. This downturn has raised concerns among investors, as the SHIB token is nearing a high-risk chart pattern known as a death cross. This pattern occurs when the 50-day and 200-day Weighted Moving Averages (WMA) cross each other, indicating a potential shift in market sentiment from bullish to bearish.

The daily chart of the SHIB token shows that the price has retreated from its peak at $0.00003340 to the psychological point at $0.000020. Technical analysis suggests that the SHIB coin may have more downside, as it has formed a head-and-shoulders pattern, which is often associated with further price declines in the longer term. Additionally, the coin is on the verge of forming a death cross pattern, which is considered one of the riskiest chart patterns in the financial market. The spread between the 50-day and 200-day WMA has narrowed to just 3.1%, down from over 10% a few days ago, suggesting that bears may be gaining control of the market.

The SHIB price has also formed a double-top chart pattern at $0.00002490, another bearish chart pattern that could signal further price declines. Furthermore, the Shiba Inu price has moved to the closely watched 61.8% Fibonacci Retracement level, indicating a strong bearish breakdown could occur in the next few weeks. If this happens, the next price to watch will be $0.00001850, its lowest swing on December 20. A drop below this support level could point to more downside, potentially to the 78.6% point at $0.00001568, down by 23% from the current point.

The bearish outlook for the Shiba Inu coin will remain as long as it is below the double-top point at $0.00002490. However, it is essential to note that the SHIB token has experienced significant price fluctuations in the past, and its future performance will depend on various factors, including market sentiment, regulatory developments, and technological advancements within the Sh