Shiba Inu (CRYPTO: SHIB) was trading on Wednesday in a sideways tightening pattern along with Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE), with all three cryptos printing bullish inside bar patterns on the daily chart.
Shiba Inu, termed “Doge Killer,” has been on a tear since Oct. 4 when it skyrocketed almost 80% in a single 24-hour period. The crypto then continued its journey over the following three days, completing a 313% run north, in total, before topping out at $0.00003535.
The Shiba Inu Chart: After the long run, the micro alt-coin ran out of steam and snuggled into a tightening triangle pattern on the daily chart. On Monday, Shiba Inu broke up bullishly from the triangle pattern and darted 22% higher before entering into a second consolidation pattern.
Like the first consolidation pattern, the second triangle pattern is considered bullish by technical traders because the crypto was trending higher before trading sideways. Shiba Inu will meet the apex of its newest triangle on Oct. 17 and traders can watch for high volume to come in when the crypto breaks from the pattern to judge whether the triangle was recognized.
Shiba Inu is also trading in a double inside bar pattern on the daily chart with the mother bar created on Monday and the two subsequent inside bars on Tuesday and Wednesday. The long upper wick on Wednesday’s candle indicates there are some profit takers, but the decreasing volume indicates an overall lack of sellers.
The crypto is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. Shiba Inu is also trading well above the 200-day simple moving average, which indicates overall sentiment in the crypto is bullish.
- Bulls want to see Shiba Inu continue to consolidate to drop the crypto’s relative strength index back below the 70% mark. After the crypto has gained some power through sleepy consolidation bulls want to see big bullish volume break Shiba Inu up from the triangle. There is resistance above at $0.00003209 and the most recent high of $0.00003535.
- Bears want to see big bearish volume come in and break Shiba Inu down from the inside bar pattern and below a support level at $0.00002852, which would negate the current triangle. Below the level, the crypto has support at $0.00002221 and $0.00001799.
- Photo by Minh Pham on Unsplash