Shiba Inu Trending Down With Dogecoin, But A Breakout May Be Near: Technical Analysis

Shiba Inu SHIB/USD is trading lower Wednesday along with Dogecoin DOGE/USD, one of the meme crypto's inspirations. Shiba is nearing the end of a pattern and could be setting up for a breakout soon if the crypto begins to see above average volume.

Shiba Inu was down 2.06% over 24 hours at $0.00003247 at time of publication.

See Related: Dogecoin Continues Digging Downward As China's Crypto Ban Looms

Shiba Inu Daily Chart Analysis

• Shiba Inu is nearing the end of what traders call a pennant pattern and could be due for a breakout and a large move if it can push past resistance on strong volume.
• The cryptocurrency trades below its 50-day moving average (green) but above the 200-day moving average (blue). This shows that Shiba Inu is in a period of consolidation and the 50-day moving average may act as resistance while the 200-day moving average may be support.
• The Relative Strength Index (RSI) has been moving sideways the past few weeks and sits at 42. This shows there are slightly more sellers in the market than there are buyers. This has caused the asset to fade lower over the past few weeks.

What’s Next For Shiba Inu?

As Shiba Inu nears the end of the pattern, it may either break above resistance or below support. A break of one of these levels with above-average volume, may cause the crypto to see a further, stronger move in the same direction.

Bulls are looking for the resistance break with high volume to possibly see a powerful bullish move. Bears are looking for Shiba Inu to drop below pattern support and for the level to begin holding as resistance.

Photo: Courtesy of Romain Brami on Flickr.