Bitcoin continued to fly higher during Monday’s 24-hour trading session, which helped propel Shiba Inu SHIB/USD up over 6% before the micro crypto retraced to near flat amid increased positive sentiment in the crypto sector.
While Bitcoin and Ethereum have witnessed a sharp rise over recent weeks, Shiba Inu has shown comparative weakness. Compared to Dogecoin DOGE/USD, which has surged over 45% since Oct. 8, Shiba Inu has risen 23% over the same period.
Despite not enjoying as strong of a rally as some other popular cryptos, Shiba Inu is trading in a confirmed uptrend on the daily chart and recently formed a golden cross. When Bitcoin begins to consolidate, altcoins, such as Shiba Inu, could experience stronger momentum to the upside.
An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.
Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.
Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.
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The Shiba Inu Chart: Shiba Inu’s most recent uptrend began on Nov. 22, when the crypto regained the 200-day simple moving average (SMA) as support. On Nov. 30, the 50-day SMA crossed above the 200-day, which caused a golden cross to form, which suggests Shiba Inu is trading in a confirmed bull cycle.
- Shiba Inu’s most recent high low within the uptrend was formed on Nov. 27 and Nov. 28 at the $0.0000083 mark and the most recent confirmed higher high was printed at the $0.00000865 mark on Nov. 27. If Shiba Inu continues to retrace on Tuesday, Sunday’s high-of-day will become the next higher high within the uptrend.
- Bullish traders want to see Shiba Inu continue to trade above the eight-day exponential moving average (EMA), which is trending above the 21-day EMA and is bullish. Tuesday’s consolidation sideways was helping to drop the crypto’s relative strength index (RSI), which will allow Shiba Inu more room to pump higher if bullish momentum comes in.
- Bearish traders want to see big bearish volume come in and knock Shiba Inu down under the 50-day and 200-day SMA, which would suggest the recent move north was a bull trap.
- Shiba Inu has resistance above at $0.00000966 and at $0.00001081 and support below at $0.00000856 and at $0.00000793.
Read Next: Bitcoin Has Potential To 'Significantly Reshape' Cyber Warfare, Says US Space Force Major
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