‘Dogecoin Killer’ Shiba Inu Steadies After Increasing Volatility: A Look At The Trading Patterns – SHIBA INU (SHIB/USD)
Shiba Inu SHIB/USD suffered some volatility during Monday’s 24-hour trading session, whipsawing up and down between $0.00000854 and $0.0000094.
The volatility was instigated by Binance CEO and founder Changpeng “CZ” Zhao, who took to Twitter to try and calm investor fears over the liquidity crisis caused by the decimation of Sam Bankman-Fried’s FTX trading platform last week.
Bitcoin BTC/USD climbed almost 6% on the news before being dragged down to trade mostly flat. Ethereum ETH/USD and Dogecoin DOGE/USD behaved similarly, briefly popping higher before sliding down, near to their opening price.
Zhao announced that he’s forming an “industry recovery fund” to support “strong” companies and projects in the crypto sector that are struggling with liquidity, according to a report.
The FTX debacle caused traders and investors to begin withdrawing their crypto over fears the platform’s ruin would have a cascading effect on other exchanges.
Although Shiba Inu, dubbed the “Dogecoin Killer,” has traded lower over the last five 24-hour trading sessions, the crypto hasn’t broken below the Nov. 10 low-of-day, which has set Shiba Inu into a quadruple inside bar pattern on the daily chart.
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The Shiba Inu Chart: Shiba Inu’s quadruple inside bar pattern leans bearish, because the crypto was trading lower before it was formed. The $0.00000850 mark, however, previously held as support on Nov. 10 and also on Monday, which has formed a bullish double-bottom pattern.
- Shiba Inu may also be developing an ascending triangle pattern on the daily chart. If the triangle is the dominant pattern, traders can watch for an upward break from the descending trendline, or down from the horizontal trendline of the triangle on higher-than-average volume to take place before Shiba Inu reaches the apex on Nov. 17.
- During Monday’s trading session, Shiba Inu was working to print a doji candlestick, which could indicate the temporary bottom is in. If the crypto trades above Monday’s high-of-day and breaks up through the triangle, the low-of-day may serve as a higher low, which could negate the current downtrend.
- Shiba Inu has resistance above at $$0.00000975 and $0.00001081 and support below at $0.00000856 and $0.00000738.