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Within the next 100 days, Shiba Inu may be about to form a golden cross, which is traditionally regarded as a bullish signal on conventional financial markets. The onset of a notable uptrend is frequently linked to this technical formation, which happens when a shorter-term moving average (such as the 50-day EMA) crosses above a longer-term moving average (such as the 200-day EMA).
But the significance of this event may not be as bright for Shiba Inu as it seems. For traders and investors, the golden cross may be thrilling, but there is some sobering history to take into account. In December 2023, Shiba Inu last saw a golden cross. Many people thought at the time that this signal would cause SHIB’s price to soar, but the truth was more muted.Â
The price spike that many anticipated for SHIB did not occur immediately after the golden cross. For a while, the asset actually lost momentum, and the golden cross itself had nothing to do with the eventual growth that did occur. Keeping expectations in check is crucial in light of this historical precedent. Golden crosses are generally regarded as bullish signals, but they do not always indicate rapid or even steady growth – particularly for meme coins like SHIB.Â
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Despite the possible golden cross formation, the token has been steadily losing ground over the past year, and a further retracement is still possible. The larger market conditions and the hype generated by the SHIB community will probably have a greater impact on the price trajectory of the company in the future than this technical formation.
A longer-term recovery could be indicated if the golden cross materializes, but it is unclear if that will happen before or after 2025.
