Shiba Inu climbed almost 2% higher during Thursday’s 24-hour trading session, showing strength compared to Dogecoin, which was struggling to trade flat after being pressured downwards earlier in the session.
The crypto, dubbed the “Dogecoin Killer,” was moving higher on lower-than-average volume, which suggests consolidation. Shiba Inu was also working to form an inside bar pattern.
An inside bar pattern indicates a period of consolidation. It’s usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks. It consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar, and each is called an “inside bar.”
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders should watch for high volume for confirmation the pattern was recognized.
On July 28, Shiba Inu broke up bullishly from a triangle formation. After breaking up from the pattern, Shiba Inu began consolidating sideways on steadily decreasing volume, which suggests health consolidation.
Shiba Inu’s inside bar leans bullish because the crypto was trading higher before forming the pattern. Traders can watch for the crypto to break up from Wednesday’s mother bar on higher-than-average volume later on Thursday or on Friday to gauge the direction.
For short-term traders, the eight-day exponential moving average has been mostly guiding Shiba Inu higher. A loss of that area could signal a good place for an exit. Longer-term traders want to see Shiba Inu continue to hold above the 50-day simple moving average.
Shiba Inu has resistance above at $$0.00000856 and at $0.00000877 and support below at $0.00000793 and at $0.00000774.
Produced in association with Benzinga