Why Shiba Inu May Win The Weekend Doge Fight: A Technical Analysis

Shiba Inu SHIB/USD is often requested to be charted for Benzinga’s bi-weekly “You Ask, We Analyze” articles, where Benzinga asks its followers what they’re buying at the open, then writes a technical analysis based on the picks.

It’s not surprising because Shiba Inu has a large pack of enthusiasts, called ShibArmy, who rally behind the token and sometimes end up in dog fights with the Dogecoin DOGE/USD family.

Despite popular fintwit personalities such as Dogecoin co-creator Billy Markus calling for silence between the two groups the barking matches continue, although both dog-based cryptos can have their day.

On Friday, Shiba Inu was looking more bullish than Dogecoin and if Shiba Inu can hold above its trendline break, the crypto may be in for a run over the weekend.

See Also: Shiba Inu To Be Listed By India's First Crypto Unicorn On Its Primary Trading App

The Shiba Inu Chart: On Thursday, Shiba Inu broke up bullishly from a descending trendline that has been holding the crypto down since Oct. 28. On Friday, although Shiba Inu was trading about 8% lower, the crypto appeared to be backtesting the trendline as support.

The backtest of the level was taking place much-lower-than-average volume, which indicates consolidation is taking place. By Friday afternoon, Shiba Inu’s volume stood at 4.83 trillion compared to the average 10-day volume of 14.66 trillion.

Shiba Inu is trading pinned between the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, which indicates bullish indecision. The crypto is trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish. Shiba Inu will need to trade back up above the eight-day EMA soon to avoid a bearish crossover between the eight-day and 21-day.

• Bulls want to see Shiba Inu hold above the trendline and then for big bullish volume to come in and push the crypto up above the eight-day EMA and over a resistance level at $0.00005670. If Shiba Inu can regain the level as support it has room to trade back up toward $0.00006387.
• Bears want to see big bearish volume come in and drop Shiba Inu back below the descending trendline. Below the trendline there is support at $0.00004590 and if the crypto were to fall below the area there is further support at $0.00003607.
  
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Photo: Shiba Inu; Dogecoin by Ishwar via Pixabay