Shiba Inu (CRYPTO: SHIB) traded over 2% higher during Wednesday’s 24-hour trading session, as Bitcoin (CRYPTO: BTC), which rose by about the same amount.
The Shiba Inu, dubbed the “Dogecoin killer,” passed Dogecoin (CRYPTO: DOGE) and attempt to regain the 50-day simple moving average (SMA) as support after breaking down bearishly from a triangle pattern, which Benzinga said to look for to determine future direction on February 23.
Interestingly, the crypto sector moved higher in opposition to the general market, which saw S&P 500 gap down to open and continue to fall in the early session. The crypto sector seems to be moving with spot gold, on the other hand, which went higher for the third day in a row.
Do you want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
Fear that Federal Reserve will continue to raise interest rates into 2023, and perhaps by more than 0.25% in March, has gripped the stock market, raising concerns that the central bank’s inability to curb inflation could quickly plunge the US into recession. If that happens, it will be the first time the crypto sector has traded during a major economic downturn, which will give an insight into whether the argument that Bitcoin is the “new gold” is true.
ENTER TO WIN $500 IN STOCKS OR CRYPTO
Enter your email and you’ll also receive Benzinga’s ultimate morning update AND a free gift card of $30 and more!
The Shiba Inu Chart: The Shiba Inu broke out of its triangle pattern on February 25th, quickly reappeared in the formation and on February 27th the crypto lost support at the lower trendline of the pattern for the second time. On Tuesday, bearish momentum came in and sent Shiba Inu down over 4%.
- During Wednesday’s session, Shiba Inu attempted to reclaim the 50-day SMA, and if the crypto is able to close above this area, it will give bullish traders more confidence going forward. If that happens, Bullish traders will want to see the Shiba Inu reclaim the eight-day and 21-day exponential moving averages over the next few days.
- Shiba Inu is trading in a downtrend, with the most recent low formed on Sunday at $0.00001318 and the most recent lower low being printed at $0.00001192 on Wednesday. For the downtrend to be negated, the Shiba Inu will either have to break above the recent low or form a higher low on the next retracement lower.
- Shiba Inu has resistance above at $0.00001259 and $0.00001349 and support below at $0.00001178 and $0.00001081.
