Dogecoin Rival Shiba Inu Climbs Up From This Pattern, Prints A Bounce Indicator: What's Next?

Zinger Key Points
  • Shiba Inu is trading in a confirmed uptrend within an ascending channel pattern on the 24-hour chart.
  • The crypto was working to print a hammer candlestick, which could indicate a bounce is on the horizon.

Shiba Inu SHIB/USD was sliding over 2% lower during Wednesday’s 24-hour trading session, in sympathy with Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD, which were slipping 2%, 3% and 4%, respectively.

On Tuesday, WhaleStats tweeted that Shiba Inu is among the top 10 cryptos that have been purchased by the 5,000 biggest Ethereum whales, along with Polygon MATIC/USD. However, on Coinbase’s platform, Shiba Inu’s trading volume has been decreasing, as the crypto continues to trade in an uptrend within an ascending channel pattern.

The pattern is bullish for the short term but can be bearish down the road.

  • For bullish traders, the "trend is your friend" (until it's not) and the crypto is likely to continue upwards. Aggressive traders may decide to buy SHIB at the lower trendline and exit the trade at the upper trendline.
  • Bearish traders will want to watch for a breakdown from the lower ascending trendline, on high volume, for an entry. When a stock breaks down from an ascending channel, it's a powerful reversal signal and indicates a steep downtrend may be in the cards.

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The Shiba Inu Chart: Shiba Inu started to trade in an ascending channel pattern on Nov. 20 and reversed into an uptrend on Nov. 22. Since then, Shiba Inu has made a consistent series of higher highs and higher lows, with the most recent confirmed higher low formed on Nov. 28 at $0.00000877 and the most recent higher high printed at the $0.00001016 mark on Monday.

  • During Wednesday’s 24-hour trading session, Shiba Inu tested the bottom ascending trendline of the pattern and bounced up from the area, which indicates the channel is recognized. The bounce looked to be causing Shiba Inu to print a hammer candlestick on the 24-hour chart, which indicates the next higher low may have occurred, and the crypto may spike higher on Thursday.
  • If Shiba Inu is able to break up above the median line of the channel, the crypto will regain the eight-day and 21-day exponential moving averages (EMAs) as support. If Shiba Inu is able to trade above the two EMAs for a period of time, the eight-day EMA will cross above the 21-day, which would be bullish.
  • Shiba Inu has resistance above at $0.00000975 and $0.00001081 and support below at $0.00000856 and $0.00000738.

Read Next: EXCLUSIVE: O'Leary, Scaramucci Answer Tough FTX Questions At Benzinga's Future Of Crypto Event

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