Benzinga - Shiba Inu (CRYPTO: SHIB) and Baby Doge Coin (CRYPTO: BABYDOGE) were both trading slightly lower during Friday’s 24-hour trading session, in continued consolidation after the FTX debacle and resulting bankruptcy sent the wider crypto sector plunging on Nov. 8 and Nov. 9.
Shiba Inu and Baby Doge Coin have traded in tandem with Dogecoin (CRYPTO: DOGE), settling into triangle patterns, which could also be considered bear flag patterns when paired with the FTX-induced decline.
Traders and investors of Shiba Inu and Baby Doge Coin will want to keep a close eye on Bitcoin (CRYPTO: BTC) over the weekend, because the two micro cryptos are likely to take cues from the apex crypto.
If Bitcoin begins to move higher, Shiba Inu and Baby Doge Coin may break up from the triangles, while if Bitcoin breaks to a new 52-week low over the coming days, Shiba Inu and Baby Doge Coin are likely to break down from their bear flags.
From a technical standpoint, both cryptos look set to break up or down from their respective triangles over the coming days, although Shiba Inu may lead because it will hit the apex of its triangle sooner.
It should be noted, however, that events affecting the general markets and news headlines can quickly invalidate patterns and breakouts. As the saying goes, "the trend is your friend until it isn't," and any trader in a position should have a clear stop set in place and manage their risk versus reward.
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The Shiba Inu Chart: Shiba Inu is set to meet the apex of its triangle on Sunday and traders can watch for the crypto to break up or down from the pattern on higher-than-average volume to gauge the future direction. If Shiba Inu breaks from the pattern on low volume, the triangle will be negated and the crypto may continue to consolidate sideways for a period of time.
If Shiba Inu breaks down from the triangle on high volume on smaller time frames, the bear pattern may be dominant. If that happens, the measured move is about 27%, which indicates Shiba Inu could fall toward $0.00000720.
If Shiba Inu breaks up from the triangle, the crypto will regain the eight-day exponential moving average (EMA), which would be a positive sign for the bulls. A break up from the triangle could also cause Shiba Inu to print a higher high above $0.00000965, which would confirm the crypto is trading in an uptrend.
Shiba Inu has resistance above at $0.00000925 and $0.00000975 and support below at $0.00000856 and $0.00000738.
The Baby Dogecoin Chart: Baby Doge Coin is set to meet the apex of its triangle on Nov. 23. Like with Shiba Inu, traders can watch for a break of the triangle to come on higher-than-average volume to indicate the pattern was recognized.
Baby Doge Coin’s trading volume has been steadily decreasing, which indicates the crypto is running out of both buyers and sellers. Decreasing volume is often followed by a big influx in volume, which could help to break Baby Doge Coin from the triangle prior to the crypto reaching the apex.
Baby Doge Coin has resistance above at $1.33 and $1.60 and support below at $1.42 and 87 cents.
See Also: FTX's Bombshell Court Filing: Sam Bankman-Fried Was Ordered By Bahamas Regulators To Obtain Digital Assets Via 'Unauthorized Access'
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