Crypto Puppy Wars: Baby Dogecoin And Shiba Inu Nip At Breakouts, But Which Will Reign Best Of Breed?

Crypto Puppy Wars: Baby Dogecoin And Shiba Inu Nip At Breakouts, But Which Will Reign Best Of Breed?

Baby Dogecoin DOGE/USD and Shiba Inu SHIB/USD were both consolidating on Tuesday in an inside bar pattern on the daily chart.

The two micro-cryptocurrencies, developed to compete with Dogecoin DOGE/USD, are trading on very different trajectories with Baby Dogecoin blasting up toward its Oct. 30 all-time high of $0.000000005220 recently while Shiba Inu has retraced back under a support and resistance level at $0.00002958 that had been holding the crypto up since Oct. 23.

If Baby Dogecoin and Shiba Inu’s patterns continue to play out, Baby Dogecoin traders and investors could win the puppy race to new all-time highs, while Shiba Inu may struggle to get back up on four feet, unless it can break through its falling channel.

It should be noted, however, that events affecting the direction of the general markets can quickly invalidate patterns, especially in the historically volatile crypto sector. As the saying goes, "the trend is your friend until it isn't" and any trader position should have a clear stop set in place and manage their risk versus reward.

In The News: Baby Dogecoin recently overtook Ethereum ETH/USD to be the most traded cryptocurrency by Binance Smart Chain whales, although the whales still hold more Ethereum in their wallets.

In comparison, Shiba Inu added 80,000 new holders in December but the price slid 24.96% during the month, indicating a period of distribution took place where whales sold off their positions to multiple smaller buyers.

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The Dogecoin Chart: Baby Dogecoin’s inside bar pattern creating on Tuesday leans bullish because the crypto was trading higher before printing the pattern. Both bullish and bearish traders can watch for a break from the pattern late Tuesday or on Wednesday to gauge whether the pattern was recognized.

  • There is a possibility Baby Dogecoin could also trade sideways or create a double inside bar pattern over the coming days to cool its relative strength index (RSI), which is currently in overbought territory.
  • Even if the crypto breaks bearishly from the inside bar pattern, Baby Doge is trading in an uptrend unless it falls below the Jan. 10 low-of-day at the $0.000000002711 level.
  • Baby Dogecoin has resistance above at $0.000000003673 and $$0.000000003900 and support below at $0.000000003470 and $0.000000003199.

The Shiba Inu Chart: Shiba Inu was trading almost 5% higher on Tuesday but within an inside bar pattern that leans bearish because the crypto was trading lower before printing the formation.

  • On a positive note, Shiba Inu is trading within a falling channel, a pattern which can turn bullish very quickly when a stock or crypto busts up through the upper descending trendline of it.
  • If the crypto can break bullishly from the channel the next course of action will be to regain support at the eight-day EMA, which would give it room to trade up toward the $0.00003450 level and print a higher high.
  • Shiba Inu has resistance above at $0.00002958 and $0.00003607 and support below at $0.00002333 and $0.00001734.

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