Benzinga - Shiba Inu (CRYPTO: SHIB) was sliding over 4% lower Wednesday, in tandem with the wider crypto sector, which saw Bitcoin and Ethereum falling about 2%.
Dogecoin was retracing over 3%, looking to break down from Monday’s mother bar pattern, while Shiba Inu confirmed its current downtrend remains intact.
Shiba Inu’s downtrend is taking place within a falling channel pattern on the 24-hour chart. The pattern is bearish for the short term but can be bullish down the road.
- For bearish traders, the "trend is your friend" (until it's not) and the stock is likely to continue downwards. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
- Bullish traders will want to watch for a break up from the upper descending trendline, on high volume, for an entry. When a stock breaks up from a descending channel, it's a powerful reversal signal and indicates a rally is likely in the cards.
The Shiba Inu Chart: Shiba Inu started to trade in its downtrend within the falling channel on June 23. The most recent lower high within the formation was created on Tuesday at $0.00000768 and the most recent confirmed lower low was printed at the $0.00000743 mark the day prior.
- On Wednesday, Shiba Inu opened the 24-hour trading session with a double inside bar pattern but broke down from Monday’s mother bar intraday. If the crypto closes the trading session near its low-of-day, Shiba Inu will print a bearish Marubozu candlestick, which could indicate lower prices will come again on Thursday.
- Bullish traders want to see the stock hold above the lower trend line of the channel and then for big bullish volume to come in and break the crypto up from the pattern. If that happens, it could signal a longer-term reversal to the upside.
- Shiba Inu has resistance above at $0.00000738 and $0.00000774 and support below at $0.00000694 and $0.000006.
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