Shiba Inu Shows Strength Vs. Dogecoin But Prints A Bearish Pattern: Bull, Bear Case

Shiba Inu SHIB/USD was trading slightly higher during Tuesday’s 24-hour trading session, showing strength compared to Dogecoin DOGE/USD, which was trading lower in tandem with the wider crypto sector after consumer price date released by the U.S. Labor Department showed inflation came in lower-than-expected.

The Shiba Inu-themed crypto, dubbed the “doge killer,” looked to be settling into a bear flag pattern on the daily chart, despite the slight increase.

The bear flag pattern is created with a steep drop lower forming the pole, which is then followed by a consolidation pattern that brings the stock higher between a channel with parallel lines or into a tightening triangle pattern.

For bullish traders, the "trend is your friend" (until it's not) and the stock may continue to rise upwards within the following channel for a short period of time. Aggressive traders may decide to purchase the stock at the lower trend line and exit the trade at the higher trend line.

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

The Shiba Inu Chart: Shiba Inu’s possible bear flag pattern was formed between June 10 and Tuesday, with the downward sloping pole formed on the first day of that time frame and the upwards sloping flag forming since. The measured move, if Shiba Inu breaks down from the flag on higher-than-average volume, is about 18%, which suggests the crypto could fall toward $0.00000576.

• Shiba Inu is also trading in a downtrend, making a series of lower highs and lower lows. The most recent lower high within the pattern was formed on June 6 at $0.00000825 and the most recent lower low was printed at the $0.00000639 mark on Monday.
• If Shiba Inu falls on Wednesday, Tuesday’s high-of-day will become the next lower high within the pattern. Bearish traders will then want to see the crypto break down from the flag on higher-than-average volume.
• Bullish traders want to see Shiba Inu regain the eight-day exponential moving average as support to negate the bear flag and then for the crypto to eventually print a higher low to negate the downtrend.
• Shiba Inu has resistance above at $0.00000738 and $0.00000793 and support below at $0.00000600 and $0.00000650.