Shiba Inu Consolidates With Dogecoin, Bitcoin – Can Crypto Regain That Barometer?

shiba inus SHIB/USD rose around 1.7% during Tuesday’s 24-hour trading session, in tandem with Dogecoin DOGE/USDwhich was trading slightly higher.

The two 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 as many coins and tokens have surged over the past few weeks causing the apex cryptos to find the important 200-day simple moving average (SMA) as support.

shiba inus soared over 42% between Dec. 28 and Saturday and had since consolidated below the 200-day SMA.

The 200 days is an important indicator, which technical traders use to determine if a stock or crypto is in a bullish or bearish cycle. The 200-day SMA acts as both a heavy support and resistance zone, and stocks and cryptos rarely break or drop through the level on the first attempt.

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

  • Traders can watch for Shiba Inu to eventually separate or detach from Saturday’s mother bar later Tuesday or over the next few days on above average volume to indicate that the pattern has been recognized. If the crypto breaks out of the pattern, it will regain the 200-day SMA, which would give bullish traders more confidence going forward.
  • If Shiba Inu breaks 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 low of 0, $00000865. Bearish traders want to see Shiba Inu reverse its uptrend by printing either a lower high or a lower low.
  • Shiba Inu has resistance above $0.00001081 and $0.00001178 and support below $0.00000975 and $0.00000877.

Read more : Why SHIB is back in the top 3 holdings of major ETH whales

Photo: Denis Diatel via Shutterstock

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