Shiba Inu (CRYPTO: SHIB) continued to trade with a high level of volatility during Thursday’s session, temporarily jumping above the 200-day simple moving average (SMA) before falling back below that level.
The continued volatility follows Wednesday’s price action, which saw Shiba Inu oscillate between $0.00000975 and $0.00001075 during the session. The move on Wednesday came in tandem with Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE), which struggled to hold onto gains and closed the 24-hour trading session nearly flat.
The 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 candles must be completely within the range of the mother bar, and each of them is called an “inside bar”.
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The Shiba Inu Chart: When the Shiba Inu rejected the $0.00001075 level, it created a bearish double top pattern and on Thursday, the crypto reacted to the formation on smaller time frames. On April 21, Shiba Inu fell below the 200-day SMA and has been consolidating below the area since, showing no clear uptrend or downtrend.
- The crypto has been trading on lower-than-average volume, indicating a current lack of interest in Shiba Inu from both the bulls and bears. The crypto may continue to trade mostly sideways until a large amount of volume comes in to either break the Shiba Inu above the 200 day or drop the crypto into a confirmed downtrend.
- If the Shiba Inu is unable to recover the 200-day SMA, the 50-day SMA will cross below the 200-day, which will cause a death cross to form. If that happens, a long-term bearish cycle could be on the horizon.
- If the crypto can get momentum to re-emerge above the 200-day SMA, the golden cross that occurred on February 14th will remain intact and a long-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.
Image by Kevin_Y from Pixabay
