Shiba Inu (CRYPTO: SHIB) shares are trading up Wednesday in a crypto market that is starting to bounce back. The crypto is flying higher while Dogecoin (CRYPTO: DOGE), another popular dog coin and inspiration for Shiba, is trading only slightly up today.
Shiba Inu was up 14.93% at $0.00003198 Wednesday afternoon at publication.
Shiba Inu Daily Chart Analysis
- Shiba Inu looks to have broken out of what traders call a pennant pattern. The price fell below pattern support and looked like it was making a bearish breakout, but was able to quickly recover and has now crossed pattern resistance to look like a bullish breakout.
- The crypto trades below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the crypto is in a period of consolidation and the 50-day moving average may act as resistance and the 200-day moving average may be support.
- The Relative Strength Index (RSI) saw a jump higher Wednesday and moved up to 48 on the indicator. This shows that buyers have been moving into the crypto and there are now almost as many buyers as there are sellers. If the RSI continues to climb, the price may climb along with it.
What’s Next For Shiba Inu?
As Shiba Inu climbs above pattern resistance, it gives the crypto a bullish outlook. If the crypto can hold above the level it may continue to see a breakout and continue pushing higher. Bulls are then looking for the price to cross above the 50-day moving average and begin to form higher lows. Bears are looking to see the price fall back below the pattern support and hopefully see a strong bearish push below the 200-day moving average.
Image by Leandro De Carvalho from Pixabay
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