June 1, 2023 4:31 PM | 2 min read
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.
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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.
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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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