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A Golden Cross has formed on Shiba Inu's (SHIB) daily chart — a strong bullish signal in which the 50-day moving average crosses above the 200-day moving average. This is a rare event for the market - investors have not seen a full crossover of these indicators since November 2024.
However, the long-awaited technical breakout immediately ran into heavy selling pressure, turning into an immediate reality check for the emerging trend amid a broad market sell-off.
After a local upswing, SHIB bounced from a low of $0.00000550 and attempted to hold at $0.00000625. The price then fell sharply, losing 5.72% in 24 hours and dropping to $0.00000545. The token is now testing the strength of the psychologically important $0.00000550 support zone, where key moving averages converge.
The Relative Strength Index (RSI), which has retreated to a neutral 45.30, also points to buyers' initial momentum fading.
Down $570 million in 24 hours. What went wrong?
The derivatives market storm has made matters worse: the sharp reversal in prices triggered a cascade of forced liquidations, wiping out more than $634 million in trader positions over 24 hours as per CoinGlass. Longs bore the brunt: overly optimistic buyers lost a massive $572.36 million, while shorts got off with a modest $61.91 million in losses.
This mass margin call deprived SHIB of the liquidity it needed to continue its move and revived long-standing market concerns. The token is highly prone to false breakouts: a similar attempt at a reversal in August 2025 had already turned into a "bull trap."
If buyers give up the fight below $0.00000530 under liquidation pressure, the asset risks invalidating the Golden Cross and resuming its downward channel, with a potential drop below $0.00000450.
Despite the difficult market backdrop, investors' long-term expectations are still buoyed by the ecosystem's technology plans, including integration of SHIB into the Solana blockchain.
Holding current levels over the next several sessions would give the market time to fully absorb the liquidation cascade, validate the rare signal, and open the way to the intermediate target of $0.00000650, followed by the psychological level of $0.00001000.
Arman Shirinyan
Dan Burgin
