Shiba Inu (CRYPTO: SHIB) was climbing up about 1.2% during Thursday’s 24-hour trading session following Dogecoin (CRYPTO: DOGE), which was popping over 4% higher.
The crypto sector, spot gold and the stock market were all reacting bullishly to data released on Thursday morning, which showed inflation is ticking lower and the jobs market is contracting. Read more here...
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Shiba Inu was attempting to make a bullish break with momentum above Wednesday’s high-of-day, but was being held down by the upper descending trendline of a large triangle pattern the crypto has been trading in since about Feb 6.
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.
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The Shiba Inu Chart: Within Shiba Inu’s large triangle, the crypto has traded in both shorter-term uptrends and downtrends, but has most recently been making lower highs and higher lows. Shiba Inu is set to meet the apex of its triangle on April 18 and traders and investors can watch for the crypto to break up or down from the pattern on higher-than-average volume to confirm the triangle was recognized.
- If Shiba Inu breaks bullishly from the triangle, the crypto will regain the 50-day simple moving average (SMA) as support, which would give bullish traders more confidence going forward. An upward break from the pattern could also signal a long-term reversal to the upside.
- Bearish traders want to see Shiba Inu break down from the pattern, which could put the crypto in jeopardy of losing the 200-day SMA as support, which could signal a long-term downtrend is on the horizon.
- Shiba Inu has resistance above at $0.00001178 and $0.00001259 and support below at $0.00001081 and $0.00000975.
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