The Shiba Inu Weekly Death Cross: What It Means for SHIB's Next Move

Shiba Inu (SHIB) has just completed a historically significant technical event: its first-ever weekly Death Cross. This rare chart formation occurred approximately four weeks ago and represents a critical turning point in the asset’s technical landscape after the March 2024 peak that closed out the previous bull cycle.

The Downtrend Channel and Recent Support Test

Since that March 2024 high, SHIB has been grinding lower within a clearly defined downtrend channel. What makes the current situation noteworthy is that price action recently broke to a fresh lower low while simultaneously testing a critical support zone that has remained intact since May 2021. This 4-year support level has historically marked a floor where serious long-term buying opportunities have emerged during previous market cycles.

A Potential Short-Term Reversal Setup

The convergence of these factors has created an interesting technical setup. The fresh lower low formation, combined with support being held at this multi-year zone, technically validates the beginning of a bullish leg within the ongoing bear cycle. This suggests traders may have a near-term buying opportunity, at least on a tactical timeframe.

The MA50 Resistance Wall

However, any rebound faces a significant hurdle: the weekly moving average of 50 (MA50), represented by the blue trend-line on longer-term charts. Since January 20, 2025, this resistance level has consistently rejected every test and remains the primary barrier to sustained upside momentum. Historical patterns from 2022 and 2023 show that while bounces from the support zone do occur regularly, they are perpetually capped by this MA50 resistance.

Price Target and Outlook

Based on current technicals, if SHIB follows its typical pattern from this support level, expect a near-term rally that approaches the 1W MA50 resistance near the $0.0000115 level. Breaking below the recent lows would invalidate this bullish setup and likely extend weakness further into the bear cycle. The next 1-2 weeks will be critical in determining whether the weekly Death Cross leads to extended bearish pressure or if bulls can mount a credible rebound from this key support zone.