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Shiba Inu SHIB/USD enjoyed some early session volatility that caused the crypto bounce almost 4% before falling to near flat as investors mulled GDP and jobs data.
The temporary spike higher came in tandem with Bitcoin BTC/USD and Ethereum ETH/USD, which popped higher to start Thursday’s 24-hour trading session. Dogecoin DOGE/USD showed comparative weakness compared to Shiba Inu — the latter dubbed the Dogecoin killer — and was trading slightly lower without enjoying a previous boost.
Despite some volatility, Shiba Inu has been trading in a consolidation since Feb. 6. The consolidation and has settled Shiba Inu into a symmetrical triangle pattern on the daily chart.
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A symmetrical triangle pattern is created when a stock forms a series of lower highs and higher lows between a descending and an ascending trendline, which meet on the right side of the chart to form an apex. The pattern indicates that the bulls and bears are equally in control.
A symmetrical triangle is often formed on lower-than-average volume and demonstrates a decrease in volatility, indicating consolidation. The decreasing volume is often followed by a sharp increase in volume when the stock breaks up or down from the pattern, which should happen before the stock reaches the apex of the triangle.
- Aggressive bullish traders may choose to purchase a stock in a symmetrical triangle when the security reverses course on the lower ascending trendline, with a stop set if the stock rejects at the upper descending trendline of the pattern. More conservative traders may wait for the stock to break up bullishly from the pattern on higher-than-average volume.
- Aggressive bearish traders may choose to trade opposite to the bulls, entering into a short position on a rejection of the upper descending trendline and covering the position if the stock finds support at the lower trendline. Opposite to the bulls, conservative bearish traders may wait for the stock to break down from the lower trendline on higher-than-average bearish volume.
The Shiba Inu Chart: Shiba Inu started to develop its symmetrical triangle on Feb. 6, although the crypto had been holding above the lower ascending trendline of the pattern since Jan. 18. Shiba Inu is set to meet the apex of the triangle on March 4 and traders and investors can watch for the crypto to break up or down from the triangle on higher-than-average volume to gauge future direction.
- The consolidation is taking place above the 50-day and 200-day simple moving averages (SMAs) and on Feb. 14, the 50-day SMA crossed above the 200-day SMA, which caused a golden cross to form. It’s considered healthy for a stock or crypto to consolidate for a period of time after having a number of major technical indicators suggest a change in sentiment.
- The sideways consolidation has caused Shiba Inu’s relative strength index (RSI) to drop down to a comfortable 54% level from the 82% level on Feb. 4. When a stock or crypto’s RSI measures in between 30% to 70%, it indicates there is room for the price to move without it becoming overbought or oversold.
- Shiba Inu has resistance above at $0.00001349 and $0.000014.99 and support below at $0.00001259 and $0.00001178.
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Image and article originally from www.benzinga.com. Read the original article here.