Shiba Inu Consolidates Weekend Volatility, Looks To Set New Pattern: A Technical Analysis

20 December 2023

in SHIBA

Reading Time: 3 mins read

December 20, 2023 3:28 PM | 2 min read

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Shiba Inu (CRYPTO: SHIB) was crawling up about 2.8% during Wednesday’s 24-hour trading period after announcing a collaboration with the domain firm D3 Global to pursue the acquisition of the .shib top-level domain on Tuesday.

Shiba Inu’s aim is to merge the conventional domain name system (DNS) with the rapidly growing Web3 sector, providing enhanced interoperability and digital identity capabilities within the Shiba Inu ecosystem.

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The news didn’t cause Shiba Inu to increase or decrease in value dramatically. The crypto has been trading mostly sideways since last weekend, when Shiba Inu surged 20% on Saturday before plunging almost 12% the following day.

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While the weekend volatility confirmed Shiba Inu is trading in an uptrend, the recent horizontal price action may have negated that trend and the crypto may continue to consolidate on decreasing volume for some time before choosing its next direction.

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The Shiba Inu Chart: Shiba Inu’s most recent higher high was formed on Sunday at $0.00001194 and the most recent higher low was printed at the $0.00000955 mark on Monday. If Shiba Inu continues to trade sideways or falls lower on Thursday, Tuesday’s high-of-day at $0.00001052 will mark a lower high, negating the uptrend temporarily.

Shiba Inu’s trading volume has been steadily decreasing since Sunday, which indicates both bullish and bearish traders are sitting on the sidelines. The consolidation and lower prices have helped to drop Shiba Inu’s relative strength index down to about the 57 level, which gives the crypto room to run higher if the bulls take control.
Bullish traders want to see Shiba Inu close Wednesday’s 24-hour session above the eight-day exponential moving average, which could continue to guide the crypto higher.
Bearish traders want to see big bearish volume come in and drop Shiba Inu under Monday’s low of $0.00000955, which would confirm a new downtrend.
Shiba Inu has resistance above at $0.00001081 and at $0.00001178 and support below at $0.00000966 and at $0.00000877.

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