Shiba Inu Faces Death Cross on Three-Hour Chart, Could This Signal a Market Dip?

• SHIB’s death cross forms, signaling potential bearish market movement ahead.
• Dragonfly Doji hints at possible price reversal for Shiba Inu.
• Support levels critical as SHIB tests bearish market conditions soon.

Recent analysis of Shiba Inu (SHIB), the cryptocurrency is witnessing a potential death cross on its three-hour chart. This marks the first occurrence of such a signal in 2026. The 50-period moving average (MA 50) is set to cross below the 200-period moving average (MA 200), signaling a possible bearish trend in the near term. The last time a similar pattern emerged was in mid-December 2025, which led to a significant drop in Shiba Inu’s price, falling to $0.00000681.

The start of 2026 showed some early optimism, with SHIB rising sharply to a high of $0.00001017 on January 5. However, the current market conditions have dampened that optimism, leading to the formation of the death cross.

The death cross is often seen as a short-term bearish signal, and its appearance on SHIB’s chart could be concerning for investors. A similar pattern in the past led to a significant decline in price. As of now, SHIB is trading at $0.00000782, reflecting a slight gain of 0.09% in the last 24 hours but still down by more than 10% over the past week.

Source: Tradingview

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Potential for Reversal Amidst Bearish Indicators

However, there may be some hope for SHIB traders, as the cryptocurrency has recently indicated the formation of a Dragonfly Doji on its daily chart. This candlestick pattern is often seen as a potential reversal indicator, which, if confirmed, could suggest a shift toward a bullish outlook. A positive reversal could drive SHIB towards its daily MA 50 at $0.000008.

Nonetheless, if the death cross continues to unfold, Shiba Inu may experience further downside. Support is seen at $0.00000688, and the possibility of sideways trading remains a concern if the current bearish sentiment persists.

Given these developments, the next few sessions will be crucial for SHIB as traders await further confirmation of price direction. Whether the death cross leads to a prolonged market downturn or if SHIB can rebound with the help of the Dragonfly Doji remains to be seen. Investors will be closely watching these signals to gauge the cryptocurrency’s next move in the ever-changing market landscape.

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