April 27, 2023 12:43 PM | 2 min read
Shiba Inu (CRYPTO: SHIB) continued to trade with a high level of volatility during Thursday’s session, jumping up temporarily over the 200-day simple moving average (SMA) before falling back under the level.
The continued volatility follows Wednesday’s price action, which saw Shiba Inu swing between $0.00000975 and $0.00001075 within the session. The move on Wednesday came in tandem with Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE), which struggled to hold gains and closed the 24-hour trading session near flat.
Shiba Inu’s inside bar pattern indicates a period of consolidation, which is usually followed by a continuation move in the direction of the current trend.
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An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an “inside bar.”
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The Shiba Inu Chart: When Shiba Inu rejected the $0.00001075 level it created a bearish double top pattern and on Thursday, the crypto was reacting to the formation on smaller time frames. On April 21, Shiba Inu fell under the 200-day SMA and has been consolidating under the area since, while showing no clear uptrend or downtrend.
- The crypto has been trading on lower-than-average volume, which indicates a current lack of interest in Shiba Inu from both the bulls and the bears. The crypto may continue to trade mostly sideways until a large amount of volume comes in to either break Shiba Inu above the 200-day or drop the crypto into a confirmed downtrend.
- If Shiba Inu is unable to regain the 200-day SMA, the 50-day SMA will cross under the 200-day, which would cause a death cross to form. If that happens, a longer-term bearish cycle could be on the horizon.
- If the crypto can gain the momentum to pop back up over the 200-day SMA, the golden cross that occurred on Feb. 14 will remain intact and a longer-term reversal to the upside could be in the cards.
- Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000877.
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