Shiba Inu Forms 2 Patterns As The Crypto Heads Toward An Apex: A Look At The Chart

Shiba Inu SHIB/USD was trading mostly flat during Wednesday’s 24-hour trading session, trailing Dogecoin DOGE/USD, which was attempting to break higher.

Both Shiba Inu-themed cryptos are trading in inside bar patterns. Shiba Inu, specifically, is forming the pattern inside a larger triangle formation.

A symmetrical triangle pattern is created when a stock forms a series of lower highs and higher lows between a descending and an ascending trendline. They meet on the right side of the chart to form an apex.

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The pattern indicates that the bulls and bears are equally in control. A symmetrical triangle is often formed on lower-than-average volume and demonstrates a decrease in volatility, indicating consolidation. The decreasing volume is often followed by a sharp increase in volume when the stock breaks up or down from the pattern, which should happen before the stock reaches the apex of the triangle.

The Shiba Inu Chart: Shiba Inu’s inside bar leans bullish because it is forming near the top of Tuesday’s trading range. Traders and investors can watch for the crypto to break up or down from Tuesday’s mother bar later on Wednesday or on Thursday to indicate future direction.

• If Shiba Inu breaks bullishly from the pattern, the crypto may also break up from the triangle pattern that it’s been trading in since March 14. If the crypto rejects the upper descending trendline over the next few days and continues to trade within the trianlge, Shiba Inu will reach the apex of the pattern on March 28, indicating a break may come before that date.
• Shiba Inu is trading above the eight-day exponential moving average (EMA) and the 200-day simple moving average (SMA), which is bullish. Bullish traders want to see the crypto regain the 21-day EMA has support and hold above the level for a period of time, which will force the eight-day EMA to cross above the 21-day.
• Shiba Inu has resistance above at $0.00001178 and $0.00001259 and support below at $0.00001081 and $0.00000975.

Next: Biden Economic Report Says Most Crypto Assets ‘Have No Fundamental Value’