Shiba Inu SHIB/USD was slightly lower in the consolidation during Tuesday’s 24-hour trading session, in line with Dogecoin DOGE/USDwhich held flat.
The $0.00001 area has held on as a key psychological level since March 15, and while the crypto has made a series of lower highs, it has not made lower lows.
Shiba Inu’s behavior sent the crypto into a descending triangle pattern on the 24-hour chart. The pattern is usually considered to be bearish, but confirmation of a breach of the pattern is necessary to gauge the future direction.
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The Shiba Inu Chart: The Shiba Inu is set to reach the top of the triangle on March 31, and traders and investors can look for the crypto to break up or down from the pattern on higher than average volume to indicate that the pattern was recognized. If the crypto breaks from the pattern on higher than average volume, traders will be able to gauge future direction.
- If the Shiba Inu breaks out of the pattern, a long-term uptrend may be in the cards. If that happens, the crypto will regain the 200-day simple moving average (SMA), which would be bullish. If the crypto continues to reject the 200-day SMA and breaks down from the pattern, a downtrend will be confirmed and the crypto may continue to slide downwards.
- On Tuesday, the Shiba Inu worked to press a doji candlestick, indicating indecision in this case. The doji candlestick was also printed at the bottom of Monday’s trading range, which is slightly bearish. If the crypto continues to trend sideways after reaching the top of the triangle, the pattern will be invalidated and traders can look for a new pattern to form.
- Shiba Inu has resistance above at $0.00001081 and $0.00001178 and support below at $0.00000975 and $0.00000956.
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