Shiba Inu Lies Low With Dogecoin Amid Weak Trading Volume: What Bulls Want To See

Shiba Inu (CRYPTO: SHIB) was flat during Thursday’s 24-hour trading session, in tandem with Dogecoin, which was continuing to trade mostly sideways.

The crypto sector has been in a lull recently, with many coins and tokens trading on lower-than-average volume.

The bullish divergence that Shiba Inu developed on its chart, which Benzinga called out last week, has started to correct and on Wednesday, the crypto printed a higher low to negate its downtrend.

Although an uptrend hasn’t yet been confirmed, an uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods.

Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.

Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

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The Shiba Inu Chart: In order for Shiba Inu to confirm a new uptrend, the bullish volume will need to drive the crypto up over the most recent lower high of $0.0000089. A higher low was formed on Wednesday at $0.00000832.

• On Thursday, Shiba Inu attempted to regain the eight-day exponential moving average (EMA) but rejected the area as resistance. The crypto is trading under the eight-day and 21-day EMA’s, with the eight-day EMA trending under the 21-day, which is bearish.
• Bullish traders want to see big bullish volume come in and push Shiba Inu up above the 21-day EMA and trade above the level for a period of time, which would eventually cause the eight-day EMA to cross above the 21-day. Bearish traders want to see big bearish volume come in and drop Shiba Inu under the higher low, which would indicate the downtrend will continue.
• Shiba Inu has resistance above at $0.00000856 and $0.00000975 and support below at $0.00000793 and $0.00000738.

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