Shiba Inu formed its first death cross of October on a four-hour chart, signaling near-term weakness.

On Oct. 14 local time, blockchain media outlet U.Today reported that the 50-day moving average on the four-hour chart fell below the 200-day moving average, confirming a bearish reversal signal.

The signal came after Shiba Inu fell for three consecutive trading days. The token traded below $0.000005, and similar bearish crosses had already appeared on the hourly, two-hour and three-hour charts as it failed to sustain an upward move in October.

Market reaction also leaned bearish. Shiba Inu fell 3.88 percent over 24 hours to $0.000005015, and it was down 6.66 percent over the past seven days. A week-long bout of selling pushed the price below key moving averages, making the short-term downtrend more pronounced.

Macro factors also fed into the decline. Markets reacted sensitively to a U.S. consumer price index reading that came in higher than expected. The U.S. Bureau of Labor Statistics said the September CPI rose 0.6 percent from the previous month on a seasonally adjusted basis, and the 12-month increase was 3.7 percent. With inflation still above the U.S. Federal Reserve's target, risk-asset sentiment weakened broadly.

The interest rate backdrop is also weighing on the market. The Federal Reserve in its September meeting delivered its first policy rate hike in more than three years, raising the target range to 3.75 to 4 percent. Markets are leaning toward the possibility of skipping an additional hike in October, but they see the Fed potentially raising rates again in December.

The key issue is whether major support holds. If Shiba Inu remains below the current support zone, sellers could keep the upper hand and the token could face additional downside pressure toward the $0.000004 range. A death cross alone does not confirm a deeper correction. Traders should also watch price action, volume and whether buyers defend nearby support.

A rebound remains possible. If buying interest holds the support line, Shiba Inu could move back above $0.000005 and then try to recover $0.000006. Separately from the short-term bearish signal, a bullish cross previously appeared on the daily chart, raising the possibility that short-term weakness and hopes of a medium-term rebound could compete for a while.

That leaves three near-term paths: further declines if support breaks, a price recovery if support holds, and range-bound trading if the short-term bearish signal clashes with the existing daily bullish signal. Rather than drawing an immediate conclusion on direction, traders need to check whether $0.000005 and $0.000006 are reclaimed and whether a test below $0.000004 is possible.