- Shiba Inu (SHIB) has formed its second death cross of 2025, raising bearish concerns.
- The last death cross in February was followed by a prolonged decline to $0.00001.
- Recent trading volume and token burns show strong market participation despite technical weakness.
- Key support sits at $0.00001, while resistance lies between $0.000014 and $0.000016.
Shiba Inu’s Death Cross Raises Market Concerns
Shiba Inu (SHIB) is once again under the spotlight as technical indicators revealed a death cross formation on its daily chart over the weekend. A death cross occurs when the 50-day moving average drops below the 200-day moving average, typically signaling declining momentum and potential for a deeper retracement.
This marks the second death cross for SHIB in 2025. The first appeared in February and preceded a sharp decline that pushed the token down to $0.00001 in June.
From Golden Cross to Death Cross in Just One Month
Interestingly, this bearish signal comes only a month after SHIB formed a golden cross—a usually bullish event that briefly lifted investor sentiment. Unfortunately, broader market weakness and September’s historically bearish trend for cryptocurrencies reversed those gains.
SHIB climbed to $0.000013 on August 29 but quickly lost momentum in early September as macroeconomic headwinds and seasonal pressures weighed on digital assets.
Key Levels to Watch for Shiba Inu
With conflicting chart patterns, traders are closely monitoring SHIB’s next move. If the token can reclaim levels above its daily moving average, bulls may target resistance at $0.000014 to $0.000016.
Conversely, a failure to hold current support may lead SHIB to revisit $0.00001, echoing the post-February decline.
Also Read: ShibaInu Approaches Key Resistance Amid Burn Rate Surge and Potential Breakout Signals
As of the latest update, Shiba Inu trades at $0.00001291, up 4.03% in the past 24 hours and 6.58% on the week. The token has gained 2.87% in September so far, with an average monthly performance of 6.94%.
Market Activity and Token Burns Fuel Community Optimism
Despite bearish chart signals, trading activity remains strong. Shiba Inu’s 24-hour trading volume surged by 39%, reaching $143.94 million. This suggests investor interest is still healthy, even amid uncertainty.
Meanwhile, SHIB’s burn mechanism continues to remove tokens from circulation. In the past 24 hours, 1.3 million SHIB were burned across nine transactions. Although small compared to the token’s massive supply, consistent burns are seen by the community as a long-term driver of value.
Shiba Inu’s second death cross in 2025 highlights a tug-of-war between bearish technical signals and bullish community-driven fundamentals. While traders watch $0.00001 as a key support level, strong trading activity and rising burn rates indicate SHIB still commands significant market attention.
The coming weeks will determine whether SHIB follows its February pattern of decline or defies expectations with a renewed rally.