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

ByMelanie Schaffer

Jan 17, 2023
Shiba Inu Consolidates With Dogecoin, Bitcoin — Can The Crypto Regain This Bellwether?

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.

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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

Image and article originally from www.benzinga.com. Read the original article here.