The Bull, Bear Case For Shiba Inu As The Crypto Heads Towards Decision Time

Zinger Key Points
  • Shiba Inu will reach the apex of a descending triangle pattern on March 31.
  • If the pattern is recognized, the crypto will break up or down from the triangle to indicate future direction.

Shiba Inu SHIB/USD was edging slightly lower in consolidation during Tuesday’s 24-hour trading session, in tandem with Dogecoin DOGE/USD, which was holding flat.

The $0.00001 area has been holding as an important psychological level since March 15, and although the crypto has been making a series of lower highs, it hasn’t been making lower lows.

Shiba Inu’s behavior set the crypto into a descending triangle pattern on the 24-hour chart. The pattern is usually considered to be bearish but confirmation of a break of the pattern is required to gauge the future direction.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Shiba Inu Chart: Shiba Inu is set to reach the apex of the triangle on March 31 and traders and investors can watch for the crypto to break up or down from the pattern on higher-than-average volume to indicate that the pattern was recognized. If the crypto breaks from the pattern on higher-than-average volume, traders will be able to gauge future direction.

  • If Shiba Inu breaks up from the pattern, a longer-term uptrend could be in the cards. If that happens, the crypto will regain the 200-day simple moving average (SMA), which would be bullish. If the crypto continues to reject the 200-day SMA and breaks down from the pattern, a downtrend will be confirmed and the crypto could continue to slide lower.
  • On Tuesday, Shiba Inu was working to print a doji candlestick, which indicates indecision in this case. The doji candlestick was also printing at the bottom of Monday’s trading range, which leans slightly bearish. If the crypto continues to trend sideways after reaching the apex of the triangle, the pattern will be negated and traders can watch for a new pattern to form.
  • Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000956.

Read Next: If You Invested $100 In Ethereum When CFTC First Called It A 'Commodity', Here's How Much You'd Have Now

Photo: Shutterstock

Posted In: CryptocurrencyLong IdeasShort IdeasTechnicalsTop StoriesMarketsTrading Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...