Shiba Inu (CRYPTO: SHIB) was edging slightly lower in consolidation during Tuesday’s 24-hour trading session, in tandem with Dogecoin (CRYPTO: DOGE), which was holding flat.
The $0.00001 area has been holding as an important psychological level since March 15, and although the crypto has been making a series of lower highs, it hasn’t been making lower lows.
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Shiba Inu’s behavior set the crypto into a descending triangle pattern on the 24-hour chart. The pattern is usually considered to be bearish but confirmation of a break of the pattern is required to gauge the future direction.
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The Shiba Inu Chart: Shiba Inu is set to reach the apex of the triangle on March 31 and traders and investors can watch for the crypto to break up or down from the pattern on higher-than-average volume to indicate that the pattern was recognized. If the crypto breaks from the pattern on higher-than-average volume, traders will be able to gauge future direction.
- If Shiba Inu breaks up from the pattern, a longer-term uptrend could be in the cards. If that happens, the crypto will regain the 200-day simple moving average (SMA), which would be bullish. If the crypto continues to reject the 200-day SMA and breaks down from the pattern, a downtrend will be confirmed and the crypto could continue to slide lower.
- On Tuesday, Shiba Inu was working to print a doji candlestick, which indicates indecision in this case. The doji candlestick was also printing at the bottom of Monday’s trading range, which leans slightly bearish. If the crypto continues to trend sideways after reaching the apex of the triangle, the pattern will be negated and traders can watch for a new pattern to form.
- Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000956.
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