Benzinga - Shiba Inu (CRYPTO: SHIB) was trading mostly sideways at the beginning of Wednesday’s 24-hour trading session until 4 a.m., when the crypto sector reacted bearishly to inflation data coming out of the United Kingdom.
When the numbers were released, Bitcoin (CRYPTO: BTC) dropped about 3.5%, Ethereum (CRYPTO: ETH) lost 5%, Dogecoin (CRYPTO: DOGE) plunged 8.3% and Shiba Inu followed suit, declining about 5%.
The U.K., like the U.S., has been battling stubborn inflation but while there are signs the Federal Reserve’s hawkish policy is starting to work to hamper inflation at home, data from the U.K. showed inflation rose 10.1% for the 12-month period.
From a technical standpoint, Shiba Inu’s pullback appears healthy and when the crypto retraced lower, it held support at an ascending trendline and printed a possible higher low.
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The Shiba Inu Chart: When Shiba Inu dropped during Wednesday’s 24-hour trading session, the crypto tested an ascending trendline as support and bounced up from the level. Shiba Inu has been trading above the ascending trendline since March 10 and has bounced up from the area five times.
- The rebound from the trendline had Shiba Inu looking to print a hammer candlestick on the 24-hour chart, which indicates a bounce could come on Thursday. If that happens, the crypto will have printed its next higher low within its uptrend, with the most recent higher high formed at the $0.00001188 mark on Sunday.
- Bullish traders want to see Shiba Inu climb above that area, which will confirm the uptrend is intact. If that takes place, the crypto will break up from a descending trendline, which could indicate a larger reversal to the upside is on the horizon.
- Bearish traders want to see sustained selling pressure drop Shiba Inu under the 50-day and 200-day simple moving averages. If that happens, the crypto will also break down under the ascending trendline, which will negate the uptrend and indicate a longer-term slide is in the cards.
- Shiba Inu has resistance above at $0.00001178 and $0.00001259 and support below at $0.00001081 and $0.00000975.
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