Shiba Inu Hits Golden Cross, But is the Market Turning Risky?

Overview- 

• Shiba Inu (SHIB) formed a golden cross on the hourly chart, hinting at short-term upward momentum.

• Trading volume jumped over 40%, showing strong but possibly temporary market interest.

• Exchange inflows surged by more than 7,000%, signaling potential selling pressure from investors.

Shiba Inu has recently shown a pattern called a ‘golden cross.’ This is a simple idea. It happens when the short-term average price goes above the long-term average price. Traders often see this as a sign that the price may go up. 

This pattern appeared on SHIB’s hourly chart. The 50-period average moved above the 200-period average. Around the same time, the price of SHIB increased a little and stayed close to $0.0000060. The token also gained about 1% to 4% in recent trading sessions.

These small rallies made many traders feel hopeful. When such a pattern appears, people often expect more buying and higher prices. This is why more traders entered the market.

More People Started Trading

Another important point is that trading activity has increased a lot. The trading volume went up by more than 40%. This means many more people started buying and selling SHIB.

When volume rises, it usually shows strong interest. In this case, it shows that traders noticed the golden cross and reacted quickly. Some traders wanted to buy early before the price could go higher.

However, high activity does not always mean the price will keep rising. Sometimes it only shows short-term excitement.

Why This Signal May Not Last

Even though the golden cross looks like a good sign, it is not always reliable. The main reason is that it appeared on a short timeframe, which is the hourly chart.

Short-term charts can change very quickly. Prices can move up and down within hours. Due to this, signals on these charts are often weak. They do not always lead to long-term growth.

A stronger signal usually comes from daily or weekly charts. Since this one is short-term, it may only show a small temporary move.

So, while the price has gone up a little, it does not mean a big rally will happen.

Also Read - Will Shiba Inu Reach $1 in 2026? A Realistic Look

Signs That People May Be Selling

At the same time, there are signs that many investors may be getting ready to sell. One key data point is exchange inflow.

Exchange inflow means how much SHIB is being moved to crypto exchanges. Recently, this number increased by more than 7,000% in a very short time.

This is a very large jump. When people move tokens to exchanges, it usually means they want to sell them. This can happen when traders want to take profits after a small price increase.

If many people sell at the same time, the price can fall. So, even though the chart shows a positive signal, this selling pressure can stop the price from rising further.

The Overall Market is Not Strong

The situation becomes clearer when looking at the full crypto market. Right now, the market is not very strong or clear.

Prices of many cryptocurrencies are moving in a narrow range. They are not rising strongly, but they are also not falling sharply. This kind of movement shows uncertainty.

Trading activity is also not very high across the market. Many investors are waiting and watching instead of making big moves.

This kind of environment makes it hard for any single coin, including SHIB, to rise quickly.

Traders are Still Careful

Data from futures and derivatives markets shows that traders are still cautious. One key sign is negative funding rates.

Negative funding rates mean that more traders expect prices to go down rather than up. They are placing bets on lower prices or protecting themselves from losses.

This shows a lack of confidence in the market. Even with small gains, many traders are not fully convinced that a strong uptrend has started.

Shiba Inu Price Pattern Still Looks Weak

Looking at the price chart, SHIB is still not showing a strong upward trend. The price keeps making lower highs.

Lower highs mean that each time the price rises, it does not reach the previous peak. This is a sign that sellers are still in control.

Whenever the price tries to go up, it faces resistance and comes back down. This makes it difficult for SHIB to break out and move higher. Until the price starts making higher highs, the trend cannot be called strong.

Shiba Inu Price Prediction: Still Far From its Peak

Another important fact is that SHIB is still far below its highest price ever. It is trading about 90% lower than its all-time high.

This shows how much the value has dropped over time. Even though there are small recoveries, the token has not returned to its past levels. These factors also remind investors that big gains can be followed by long periods of decline.

Also Read - Shiba Inu at Critical Lows: Smart Money Buying or More Pain Ahead?

Competition is Increasing

The crypto market is also becoming more competitive. Many new projects are entering the space. These projects often offer more real-world use and better technology.

This is why money is spreading across different coins instead of focusing on meme tokens like SHIB.

This makes SHIB more dependent on hype and market mood. When excitement is low, its price can struggle.

A Mixed and Risky Situation

In the end, the current situation is mixed. The golden cross and small price increase give some hope. Higher trading activity also shows that people are paying attention.

At the same time, large exchange inflows, weak market conditions, and cautious traders show clear risks. The market is not fully confident yet. SHIB price can move in either direction.

For now, SHIB is showing both positive and negative signs. This makes the situation uncertain and slightly risky. Traders are watching closely, but strong confidence has not returned.

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FAQs

1. What is a golden cross in crypto?

A golden cross happens when a short-term average price moves above a long-term average, often seen as a bullish signal.

2. Is SHIB price expected to rise now?

There may be short-term gains, but weak market conditions and selling pressure limit strong upward movement.

3. Why are exchange inflows important?

High inflows usually mean investors are moving coins to exchanges to sell, which can push prices down.

4. Why is the crypto market uncertain right now?

Low trading activity, range-bound prices, and cautious trader behavior are creating an unclear market direction.

5. Is Shiba Inu still a strong investment?

It depends on market sentiment, as SHIB remains highly volatile and is still far below its all-time high.