The Bull and Bear Case: Shiba Inu’s High Volatility Trading on Low Volume, Influenced by Bitcoin and Dogecoin

Shiba Inu (SHIB/USD) experienced significant volatility during Thursday’s trading session, rising above the 200-day simple moving average (SMA) before dropping back down. This follows Wednesday’s price action where the cryptocurrency fluctuated between $0.00000975 and $0.00001075. Shiba Inu’s inside bar pattern implies a period of consolidation, which is typically followed by a continuation move in the current trend. The cryptocurrency rejected the $0.00001075 level, creating a bearish double top pattern, and has been consolidating under the 200-day SMA since falling below it on April 21. Shiba Inu has been trading on lower-than-average volume, indicating a lack of interest from both buyers and sellers, and may continue trading sideways until high volume either breaks it above the 200-day SMA or into a confirmed downtrend. If the cryptocurrency is unable to regain the 200-day SMA, the 50-day SMA will cross under it, causing a death cross that may signal a longer-term bearish cycle. However, if it can muster momentum to rise back above the 200-day SMA, the golden cross from February 14 will remain intact, and a longer-term reversal to the upside may occur. Shiba Inu has support below at $0.00000975 and $0.00000877 and resistance above at $0.00001081 and $0.00001178.

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