Shiba Inu Bear Trap? SHIB Hourly Death Cross Fails to Stop 5% Price Jump

Shiba Inu reversed a three-day drop, rising as much as 5% in the early Friday trading session. Shiba Inu fell for three straight days after reaching a high of $0.00000644 on March 16 before recovering.

At the time of writing, SHIB was up 3.84% in the last 24 hours to $0.00000594. The rebound follows a death cross pattern on its hourly chart, with the 50 MA falling below the 200 MA.

This occurrence questions the Shiba Inu death cross, with analysts indicating the potential of a bear trap.

A bear trap refers to a false technical signal, where the price briefly falls below a key support level, tricking traders into selling or opening short positions, only for it to sharply reverse upward. This traps bears, forcing them to cover positions at a much higher price, sparking a price increase.

This is evidenced on the hourly chart as Shiba Inu briefly declined to a low of $0.00000562 following the death cross, from where it rapidly rose, posting 12 green hourly candles at a stretch.

Shiba Inu price 

At press time, Shiba Inu was retreating in line with profit-taking on the market. This follows a trend in recent weeks, where short-term rallies are quickly sold into, preventing a sustained breakout.

It has been a mixed week for crypto. The industry got a regulatory win when the U.S Securities and Exchange Commission (SEC), on Tuesday, unveiled new details as to how it will classify cryptocurrencies, with most mature tokens, including Shiba Inu, being spared the “security” label that would come with more regulatory burdens.

Shiba Inu briefly rose above the daily MA 50 at $0.00000607 on Monday, suggesting a recovery in momentum, as it has not consistently held above that level since January. However, this was short lived, with Shiba Inu returning to its prior range.

Shiba Inu is currently making attempts to return above the daily MA 50 level, reaching an intraday high of $0.00000622. The coming sessions will be watched to see if this endeavor succeeds.