Shiba Inu (CRYPTO: SHIB) was volatile during Tuesday’s 24-hour trading session, briefly firming up to trade flat before falling over 4%. The downturn comes following a disclosure that the corporate registration supposedly submitted for the iShares XRP Trust turned out to be a hoax.
Shiba Inu, dubbed the “Dogecoin Killer” was trading in tandem with Dogecoin (CRYPTO: DOGE), which was falling over 4% in sympathy with Bitcoin and Ethereum.
Despite the retracement, Shiba Inu has maintained its uptrend. 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.
The Shiba Inu Chart: Shiba Inu crossed above the 200-day simple moving average (SMA) on Nov. 6, Nov. 11 and Nov. 12 and the crypto shot up more than 10% higher after backtesting the 200-day four times. Between Sunday and Tuesday, Shiba Inu retraced about 7.5% but hasn’t negated its current uptrend.
- Shiba Inu’s most recent higher high was formed on Nov. 12 at $0.00000966 and the most recent confirmed higher low was printed at the $0.00000792 mark on Nov. 9. If Shiba Inu closes Tuesday’s session near flat or toward its high-of-day, the crypto will print a doji or hammer candlestick, respectively, which could indicate the next local low has occurred and the crypto will trade higher on Wednesday.
- Bearish traders want to see Shiba Inu close near its low-of-day and then for big bearish volume come in and drop Shiba Inu back under the 200-day SMA, which would negate the uptrend and possibly accelerate downside momentum.
- Shiba Inu has resistance above at $0.00000856 and at $0.00000975 and support below at $0.00000793 and at $0.00000738.
Produced in association with Benzinga
