Shiba Inu price could continue its decline to lower levels following the discovery of a bearish pattern in its 4-hour chart.

Leading dog-themed token Shiba Inu (SHIB) has not been spared in the collapse recently witnessed across the broader market. Amid the latest market downturn, Shiba Inu’s price has dropped for eight consecutive days since July 28. This marked SHIB’s largest intraday losing streak of all time.

Shiba Inu Confirms Death Cross on 4-Hour Chart

As a result of this intensive price collapse, there are confirmations of a death cross on Shiba Inu’s short-term price chart. For context, a death cross is a bearish trend that occurs when the short-term moving average of an asset drops below the long-term moving average.

This particular bearish trend was spotted on Shiba Inu’s 4-hour chart recently. Specifically, the chart shows that the 50-day moving average has crossed from below the 200-day moving average.

With the death cross spotted on Shiba Inu’s 4-hour chart, the dog-themed token could likely witness further decline in the short term. However, factors such as positive updates from the ecosystem team and a shift in the broader market sentiments could initiate a potential reversal in the asset’s price.

Potential Outcomes for SHIB’s Price Action

In the meantime, Shiba Inu is currently trading at $0.00001136, down 19.69% over the past 24 hours and 33.92% in the weekly charts.

Shiba Inu 1D Chart

Following the recent price decline, SHIB plunged below crucial support at $0.00001269. The next support level is situated between $0.000008 and $0.000013, where a whopping 133.56 trillion SHIB tokens were procured by 345,340 addresses, according to data from IntoTheBlock.

If this support holds, Shiba Inu could potentially break above the daily moving averages of 50 and 200 at $0.000017 and $0.0000202, respectively. However, failure to hold this support could lead to a further decline for SHIB.

Global Market Cap Plunged Nearly 17%

It bears mentioning that Shiba Inu is not the only crypto that has recorded a significant price collapse. The broader crypto market has experienced intense selling pressure in recent weeks, which has resulted in huge declines in crypto prices.

Data from CoinMarketCap shows that the global crypto market cap is down 16.59% to $1.84 trillion. This massive downturn was triggered by macroeconomic factors and a shift in investors’ sentiment.