The long-awaited golden cross on the Shiba Inu (SHIB) price chart finally formed two days ago. However, the price of the popular meme-inspired cryptocurrency took a completely unexpected turn when, with the formation of this pattern, it fell more than 16% over the next two days, rising from a high of $0.00003 to $0.000023, where it discovered local bottom and buyer reaction.
Remember that the golden cross is the intersection of two moving averages – the upper and lower time order. A classic example is the combination of the 200-day and 50-day moving averages, when the lower crosses above the higher, meaning that the price is undervalued and usually precedes periods of growth.
For example, in the case of the Shiba Inu token, the golden cross marked an increase of more than 450% from December 2023 to March 2024.
On the other hand, SHIB’s price has risen more than 80% in the last 10 days, and the movement of the last two days can be considered a correction, especially in light of today’s CPI report, which could cause some short-term chaos. in the markets.
From this perspective, the correction, which is likely related to risk aversion ahead of an important macroeconomic report, looks logical. With this in mind, it will be even more interesting to see how the golden cross on SHIB performs when market participants are able to make investment decisions without being distracted by such factors.
