Shiba Inu forms Golden Cross, but THESE challenges crop up

• SHIB has exhibited a volatile price trend in the last few days.
• No definite support has formed due to the volatility.

Shiba Inu [SHIB] has captured market attention following its recent golden cross formation on the daily chart.

While this technical indicator typically signals bullish momentum, SHIB’s price has faced a sharp correction, prompting speculation about its next support levels.

Here’s a closer look at the factors influencing SHIB’s price and its potential trajectory.

Shiba Inu’s Golden Cross

On the SHIB/USD daily chart, a golden cross—where the 50-day moving average crosses above the 200-day moving average—emerged, hinting at a possible bullish breakout.

However, after peaking at $0.00002622, Shiba Inu saw a significant pullback, dropping to its press time level of $0.00002453, down 4.07% in the past 24 hours.

Source: TradingView

The Bollinger Bands indicated increased volatility, with SHIB trading close to the lower band. This suggested that further downside was possible if selling pressure continued to persist.

Meanwhile, the 50-day and 200-day MAs, at $0.00001902 and $0.00001833, respectively, could act as critical support zones in the event of further declines.

Network growth and on-chain activity

Data from Santiment showed a surge in SHIB’s network growth in recent weeks, with the metric hitting 6,612 new addresses at its peak before retracing slightly to 4,612.

This growth indicated heightened interest in the asset, which could help stabilize its price. However, the network’s ability to sustain this growth will be crucial in maintaining investor confidence.

Source: Santiment

The spike in network activity coincides with SHIB’s recent price rally, suggesting that new participants played a role in the upward momentum.

Moving forward, a decline in network growth could undermine SHIB’s chances of reclaiming higher levels.

Support levels to watch

With SHIB struggling to hold above $0.00002450, the next key levels to watch are the psychological barrier at $0.00002300 and the 50-day moving average at $0.00001902.

If these levels fail, a drop to $0.00001833 or lower could be on the cards. On the upside, reclaiming $0.00002600 would signal renewed bullish momentum.

Shiba Inu’s Golden Cross brought optimism to its community, but the subsequent price correction highlighted the challenges SHIB faces in sustaining its momentum.

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The asset’s network growth and support levels will be critical factors to monitor as the market navigates increased volatility.

For now, all eyes remain on SHIB’s ability to hold its key support zones and attract renewed buying interest.