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SHIBA INU: What the graphics say is the next step for Shiba Inu


It’s been a mad rush for Shiba inu (CCC:SHIB-USD). The cryptocurrency got hot in early October, then exploded higher at the end of the month.

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I was looking for a bullish move in the cryptocurrency, but didn’t necessarily think a 200% rally was in the cards in a few days. As a result, Shiba Inu exceeded all my targets on the upside.

Now the crypto is settling in again, leaving many wondering what the next step might be. Since we used the charts to focus on the previous rally we have been wondering if we can do it again.

Let’s look at the techniques.

Shiba Inu trade

Keep in mind that we’re dealing with fractions of a dime here with Shiba Inu, so it can be a little frustrating to assess this thing. In all respects, I also want to use two charts. The first is a preview of the weekly chart, highlighting some of the overall long-term levels. The other will be a daily chart so we can really zoom in on the situation.

On the weekly chart to the right, you can see that SHIB is trading lower for a fourth week in a row. It reverts to the previous May high of $ 0.00003999, as well as the 10-week moving average.

If Shiba Inu can move back above the 10-week moving average (currently at $ 0.00042), aggressive bulls may be long off this week’s low.

A pullback of more than $ 0.000042 would open the door to a potentially larger rebound. Above the week high of $ 0.00004795 we may see a stronger return to the upside.

Keep in mind that Shiba Inu can always double current levels without reach new historic heights. However, it starts with finding support near the 10-week moving average and finding the momentum to give the bulls a weekly upside rotation.

If that happens – or if Shiba finds its way into the future – any sort of movement from the current high at $ 0.0000878 opens the door for the 261.8% extension, all the way up to $ 0.00009649.

This level of extension is about 10% above the current all-time high, for some perspective. However, it should be mentioned that if this happens we will have new expansions to work with from the current lineup.

SHIBA INU: What the graphics say is the next step for Shiba Inu

I don’t want it to sound too complicated, because it’s really, really simple. If Shiba Inu finds its way here, the bulls may begin to consider potential upside spins with this week’s lowest downside risk level at $ 0.000044.

If Shiba can not Holding this week’s downside risk mark puts more downside in play. Specifically, as we turn our attention to the daily chart, we can already see that the recent November low has given traders a tag almost perfect from the October high.

But if we go back below that level, it puts last month’s major breakout area back on watch, between $ 0.00002409 and $ 0.0000323.

Below that, the newly established 200-day moving average may be on the table.

Final result

Is it really that easy, technically speaking? Yes, it really is that simple. Either Shiba Inu finds its feet and finds a certain bullish momentum, or it remains under pressure.

The fact that it is the main source of inspiration for existence is to compete with Dogecoin (CCC:DOGE-USD) seems like it will limit its existence. However, with cryptocurrencies, you can never be too sure.

Just look at the way the Squid Game room fell apart. While it ended up being a scam, this shows how quickly these assets can rise and then fall apart.

There is a major difference between Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD) and other coins compared to cryptocurrencies like Dogecoin and Shiba Inu.

The first group exists as a store of value and a means of modifying digital transactions. The latter group exists primarily as speculation. There is no significant application that Shiba Inu serves (in my opinion) and that should limit its longevity.

If it was created to compete with Dogecoin (which it was) and if Dogecoin was created as a joke (again, it was), that leads me to believe that these two cryptocurrencies will not have not the longevity that Ethereum and Bitcoin should have.

There will be big moves in both directions that traders can capitalize on. However, there is a huge difference in the quality of these holdings. That’s why I like to rely heavily on technique in this case.

As of the publication date, Bret Kenwell does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell.




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