Shiba Inu Rips Higher Alongside Dogecoin: What’s Going On? | Benzinga
Shiba Inu (CRYPTO: SHIB) shares are trading up Monday in a crypto market that is bouncing back. The crypto is flying higher alongside Dogecoin (CRYPTO: DOGE), another popular dog coin and the inspiration for the token.
Shiba Inu fell below a pennant pattern but has since recovered.
Shiba Inu was up 16.80% at $0.00003284 Monday afternoon at publication.
Shiba Inu Daily Chart Analysis
- Shiba Inu has broken out of what traders call a pennant pattern. The price fell below pattern support and seemed like it was making a bearish breakout, but was able to quickly recover and crossed pattern resistance, looking like a bullish breakout. This can be known as a fake breakout to traders: when the price crosses below support and quickly recovers and pushes higher.
- The crypto trades above both the 50-day moving average (green) and the above 200-day moving average (blue). This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been up the past weeks and now sits at 69. This shows many buyers have entered the market pushing the crypto higher. Shiba is now on the border of the oversold region and if it can climb into this area it may continue to see bullish momentum.
What’s Next For Shiba Inu?
Shiba Inu has been able to recover and looks to be breaking out of the pattern and ripping higher. This bullish cycle may continue if buyers keep entering into the crypto. Bullish traders are looking to see the RSI continue to stay high and for it to reach the oversold region. Bulls want to see the crypto form higher lows for the trend to possibly continue in the future. Bearish traders are looking to see the crypto lose ground on the RSI and fall back below the middle line. Bears also want to see the crypto fall back below the moving averages for sentiment to turn bearish once again.