Shiba Inu Consolidates With Dogecoin, Bitcoin — Can The Crypto Regain This Bellwether?

Shiba Inu Consolidates With Dogecoin, Bitcoin — Can The Crypto Regain This Bellwether?

  • Bitcoin
  • January 17, 2023
  • No Comment
  • 6

Shiba Inu SHIB/USD was popping up about 1.7% higher during Tuesday’s 24-hour trading session, in tandem with Dogecoin DOGE/USD, which was trading slightly higher.

Both Shiba Inu-inspired cryptos had been consolidating since Sunday, along with Bitcoin BTC/USD and Ethereum ETH/USD.

Consolidation across the crypto space is needed because many coins and tokens had surged over recent weeks, causing the apex cryptos to regain the important 200-day simple moving average (SMA) as support.

Shiba Inu skyrocketed more than 42% between Dec. 28 and Saturday and had since been consolidating under the 200-day SMA.

The 200-day is an important bellwether indicator, which technical traders use to determine if a stock or crypto is in a bull or bear cycle. The 200-day SMA acts as both a heavy area of support and resistance, and stocks and cryptos rarely break up or down through the level on the first attempt.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Shiba Inu Chart: Shiba Inu’s consolidation under the 200-day SMA was taking place in the form of a triple inside bar pattern. The pattern leans bullish in this case because Shiba Inu was trading higher before forming the inside bars.

  • Traders can watch for Shiba Inu to eventually break up or down from Saturday’s mother bar later on Tuesday or over the next few days on higher-than-average volume to indicate the pattern was recognized. If the crypto breaks up from the pattern, it will regain the 200-day SMA, which would give bullish traders more confidence going forward.
  • If Shiba Inu breaks down from the mother bar, traders and investors can watch to see if the crypto prints a reversal candlestick, such as a doji or hammer candlestick, above the most recent higher low of $0.00000865. Bearish traders want to see Shiba Inu negate its uptrend by printing either a lower high or a lower low.
  • Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000877.

Read Next: Why SHIB Is Back On Top 3 Holdings Of Major ETH Whales

Photo: Dennis Diatel via Shutterstock

Source link

Related post

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

Bitcoin pro traders warm up the $24K level, suggesting…

On Feb. 1 and Feb 2. Bitcoin’s (BTC) price surpassed even the most bullish price projections after the U.S. Federal Reserve…
Troubled Crypto Miners Get Breathing Room as Bitcoin Rebounds

Troubled Crypto Miners Get Breathing Room as Bitcoin Rebounds

(Bloomberg) — Rising Bitcoin prices are buying some time for distressed crypto miners as they renegotiate debt with lenders to stay…
Financial Accounting Standards Board votes to release draft cryptocurrency in March

Financial Accounting Standards Board votes to release draft cryptocurrency…

The Financial Accounting Standards Board, in its Feb. 1 meeting, voted to advance its first standard on cryptocurrencies and digital assets.…

Leave a Reply

Your email address will not be published.