Shiba Inu SHIB/USD rose about 1.7% during Tuesday’s 24-hour trading session. dogecoin Doge/US Dollartraded slightly higher.
Both Shiba Inu-inspired ciphers have been merged since Sunday. Bitcoin Bitcoin/USD When ethereum Ethereum/USD.
Consolidation across the crypto space is needed as many coins and tokens surged in recent weeks, with top cryptos regaining the critical 200-day Simple Moving Average (SMA) as support.
The Shiba Inu surged more than 42% between December 28th and Saturday before consolidating below the 200-day SMA.
The 200-day timeframe is a key indicator that technical traders use to determine whether stocks and cryptocurrencies are in a bullish or bearish cycle. The 200-day SMA acts as a heavy area of both support and resistance, with stocks and cryptocurrencies rarely breaking or falling above the level on the first try.
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Shiba Inu chart: Shiba Inu’s consolidation under the 200-day SMA was in the form of a triple inside bar pattern. In this case, the pattern is bullish as the Shiba Inu was trading higher before forming the inside bar.
- Traders could see the Shiba Inu eventually break or down from Saturday’s mother bar later on Tuesday or at higher-than-average volumes over the next few days, indicating that a pattern has been recognized. If the cryptocurrency deviates from the pattern, it will regain the 200-day SMA and give bullish traders confidence going forward.
- If the Shiba Inu breaks below the mother bar, traders and investors can see if the cryptocurrency will break out of the recent low of $0.00000865 and print reversal candlesticks such as Doji and Hammer Candlesticks. Bearish traders hope the Shiba Inu will make lower highs or lower lows to counteract the uptrend.
- The Shiba Inu has resistances at $0.00001081 and $0.00001178, and supports at $0.00000975 and $0.00000877.
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photograph: Dennis Diatel via Shutterstock