Shiba Inu (CRYPTO: SHIB) was falling slightly during Wednesday’s 24-hour trading session, in tandem with Dogecoin (CRYPTO: DOGE) amid continued fears about stubborn inflation, high interest rates and the state of the economy.
While Bitcoin and Ethereum bounced briefly during the session before falling to trade flat, Shiba Inu was less volatile due to lower-than-average volume, which suggests a current lack of interest in the crypto.
Shiba Inu is also reacting to its bearish break from a rising channel pattern, although a downtrend hasn’t yet been confirmed with the formation of a lower high.
The crypto could be in for a bounce to confirm a new trend because on Wednesday, Shiba Inu was working to print an inverted hammer candlestick.
An inverted hammer candlestick pattern forms when a red or green candlestick prints, with a long upper wick and a short lower body, which resembles an upside-down hammer.
An inverted hammer candlestick, when found in a downtrend, can indicate a reversal to the upside is on the horizon. It is a lagging indicator, however, because the next candle on the timeframe being studied must print before the pattern can be validated.
An inverted hammer candlestick doesn’t necessarily mean a new uptrend will occur, only that a bounce higher is likely imminent.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Shiba Inu Chart: Shiba Inu broke down from the rising channel pattern on Sept. 24, but trading volume didn’t increase, which suggests the bears aren’t in full control. Since breaking down from that pattern, Shiba Inu has attempted to regain the eight-day exponential moving average and failed, which indicates the area is likely to act as strong resistance in the near term.
- If Shiba Inu closes Wednesday’s trading session flat or near its low-of-day, the crypto will print a doji or inverted hammer candlestick, respectively, which suggests a bounce could come on Thursday. If that happens, bullish traders want to see the crypto rise above $0.00000772, to form a higher high.
- Bearish traders want to see Shiba Inu form a bearish reversal candlestick under that level, such as a doji or shooting star candlestick, which would suggest a lower high has printed and a downtrend will confirm.
- Shiba Inu has resistance above at $0.00000738 and at $0.00000793 and support below at $0.00000694 and at the $0.000006 level.
Read Next: Binance Sells Russia Operations After DOJ Investigation Over Sanction Violations
Photo: Canva
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!