Shiba Inu (CRYPTO: SHIB) was trading mostly sideways during Wednesday’s 24-hour trading session, in tandem with Dogecoin (CRYPTO: DOGE) which was trading flat with an inside bar pattern.
While Shiba Inu is also trading with an inside bar, the crypto has formed a symmetrical triangle pattern on the 24-hour chart.
A symmetrical triangle pattern is created when a stock forms a series of lower highs and higher lows between a descending and an ascending trend line, which meet on the right side of the chart to form an apex. The pattern indicates that the bulls and bears are equally in control.
A symmetrical triangle is often formed on lower-than-average volume. It demonstrates a decrease in volatility, indicating consolidation. The decreasing volume is often followed by a sharp increase in volume when the stock breaks up or down from the pattern, which should happen before the stock reaches the apex of the triangle.
Shiba Inu started trading in a triangle pattern on June 12, when the crypto started to move higher in a fairly consistent uptrend on larger timeframes.
Shiba Inu is set to meet the apex of the formation on July 29 and traders can watch for the crypto to break up or down from the triangle on higher-than-average volume to indicate future direction.
On Wednesday, Shiba Inu was forming an inside bar pattern, with its trading action taking place within Tuesday’s price range. The pattern is neutral but because Shiba Inu appears to be forming an inverted hammer candlestick, making a break-up from Tuesday’s mother bar is a more likely scenario.
- The crypto is trading in an uptrend, with the most recent higher high formed on July 15 at $0.00000853 and the most recent confirmed higher low printed at the $0.00000735 mark on July 12. Bullish traders want to see a break-up from the inside bar pattern and then for Shiba Inu to burst above the upper descending trend line of the triangle.
- Bearish traders want to see big bearish volume come in and drop Shiba Inu down from the triangle, which would also cause the crypto to lose support at the 50-day simple moving average.
- Shiba Inu has resistance above at $0.00000793 and $0.00000856 and support below at $0.00000738 and $0.00000694.
Produced in association with Benzinga
Edited by Saba Fatima and Asad Ali
