Arbitrum (arb) 
Shiba Inu Price Under Pressure: Key Levels to Watch
The Shiba Inu price has been underperforming other popular meme coins, raising concerns about its future trajectory. Recently, the SHIB coin dropped to a key support level at $0.000020, its lowest level since December 20. This decline has led to speculation about a potential bearish breakdown.
Death Cross Pattern and its Implications
A death cross pattern is forming, characterized by the 200-day and 50-day weighted moving averages crossing each other. The distance between the two has been narrowing, increasing the likelihood of a bearish reversal. Historically, the formation of a death cross has led to significant price declines. For instance, on June 20, 2024, the SHIB price crashed by over 40% after forming a death cross.
On the other hand, the formation of a golden cross pattern on October 20 led to an 80% surge to the November high of $0.00003340. This highlights the importance of monitoring chart patterns and moving averages for potential trend reversals.
Double-Top Chart Pattern and its Significance
A small double-top chart pattern has also formed, characterized by twin peaks and a neckline. The double-top is at $0.00002488, and the neckline at $0.00001970. A clear break below the strong, pivot, reverse point at $0.00001788 could point to more downside, with the next target being at $0.00001192, the ultimate support of the Murrey Math Lines.
Declining Addresses and Burn Rate
According to IntoTheBlock, the number of new and active addresses has dropped by 27.5% and 25% in the last seven days, respectively. This decline is likely due to traders selling their coins, potentially for newer meme coins like Fartcoin and Official Trump. The daily Shiba Inu burn rate has also crashed by almost 94%, with only 656,468 coins worth $15 being burned on Sunday.
Key Levels to Watch:
- $0.000020: key support level
- $0.00001788: strong, pivot, reverse point
- $0.00001192: ultimate support of the Murrey Math Lines
Tips for Investors:
- Monitor chart patterns and moving averages for potential trend reversals
- Keep an eye on key support levels and pivot points
- Be cautious of declining addresses and burn rates, which can impact price momentum
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