Shiba Inu (SHIB) has experienced a sharp 6.1% decline in the last 24 hours, now testing levels not seen since June. With SHIB’s golden cross formation under threat, investors are left questioning whether this bullish indicator can revive the struggling token.

Shiba Inu Slumps as Price Hits October Low

Shiba Inu (SHIB) is a popular cryptocurrency that takes inspiration from memes. Its price has been falling steadily, with a 6.1% drop in the last 24 hours. At its current price of $0.0000164, SHIB is trading near its October low.

As a crucial indicator for traders seeking to evaluate short-term trends, the fact that it has dropped below the 50-day moving average on the daily price chart has piqued the interest of investors, making this a significant development.

According to U.Today, this level has not been crossed in five months, marking this dip as particularly noteworthy.

Historical Patterns Suggest Possible Further Decline

The asset's value plummeted the previous time SHIB's price dropped below its 50-day moving average. If that pattern holds true, in just 100 days, the value of the Shiba Inu token dropped by about half. With another major technical event, the Golden Cross, approaching, investors are wondering what the future holds for SHIB.

When a short-term moving average crosses over a long-term moving average, it forms what is known as a golden cross. This crossover often indicates potential upward momentum.

Golden Cross Under Pressure as SHIB Struggles

This expected crossover may encounter additional obstacles if SHIB continues to struggle to maintain its position above its critical short-term levels. If SHIB manages to break through a crucial level during the golden cross formation, it could alter expectations for the token's trajectory.

As a result, the formation's bullish momentum could be postponed or become more complicated, casting doubt on a swift recovery for Shiba Inu.