Shiba Inu Rests Alongside Dogecoin With Investors Showing Lack Of Interest: The Bull, Bear Case

Shiba Inu SHIB/USD was falling almost 2% during Thursday’s 24-hour trading session, in tandem with Dogecoin DOGE/USD, which was nudging about the same amount lower within a sideways pattern.

Many of coins and tokens in the crypto sector have been consolidating mostly sideways recently, led by Bitcoin and Ethereum, which have been trading in horizontal patterns on decreasing volume.

For Shiba Inu, the consolidation has been taking place under the 200-day simple moving average (SMA), which the crypto fell under on April 21.

The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs whereas when the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.

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The Shina Inu Chart: Shiba Inu broke down bearishly from a triangle pattern on April 20 and quickly lost support at the 200-day SMA. The crypto has seen lower-than-average volume, however, which has helped Shiba Inu from falling into a downtrend on the 24-hour chart. The decreasing volume suggests there is a lack of interest in the crypto.

• On Thursday, Shiba Inu was trading in an inside bar pattern, with all the price action taking place within Wednesday’s range. The pattern is neutral because Shiba Inu is trading sideways, but traders can watch for the crypto to eventually break up or down from Wednesday’s mother bar to determine direction on smaller time frames.
• If Shiba Inu breaks down from the mother bar, the crypto may find support, and the reverse could near the $0.00000975 mark. If that happens, Shiba Inu will print a triple bottom pattern at that level.
• If Shiba Inu breaks bullishly from the inside bar pattern, the 200-day SMA is likely to act as resistance for further upside, at least for a period of time. Bullish traders would like to see Shiba Inu eventually regain the 200-day SMA as support, which will avoid the 50-day SMA crossing under the 200-day.
• Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000877.

Image by Satheesh Sankaran from Pixabay