Shiba Inu Swings Violently With Bitcoin, Ethereum Following FTX Bankruptcy: What's Happening?

Shiba Inu SHIB/USD swung wildly between 9 a.m. and 10 a.m. after news hit that cryptocurrency platform FTX had filed for bankruptcy.

The volatility took place in tandem with apex cryptocurrencies Bitcoin BTC/USD and Ethereum ETH/USD.

Between 9 a.m. and 9:30 a.m., Shiba Inu plunged over 6% before spending the following 30 minutes rebounding almost completely up to the $0.00001 level. Since then, Shiba Inu has been consolidating the volatility on smaller time frames, settling into a series of inside bars on the 15-minute chart.

Meanwhile, FTX CEO and founder Sam Bankman-Fried announced his resignation from the company. He will be replaced by John Ray III, who some reports say is the same person who oversaw the Enron Corporation bankruptcy.

The news comes as a disappointment after consumer price index data released by the U.S. Bureau of Labor Statistics on Thursday morning showed inflation ticked lower in October, coming in at 7.7% versus the 8% estimate. The news provided momentum to the crypto sector and boosted Bitcoin up from its almost 2-year low. Shiba Inu rebounded almost 17% in unison.

Despite the downturn during Friday’s 24-hour trading session, Shiba Inu remains trading in an inside bar pattern on the daily chart, which leans slightly bullish because Friday’s candlestick is printing near the top of Thursday’s range.

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The Shiba Inu Chart: Traders and investors will want to see Shiba Inu break up or down from Thursday’s mother bar on higher-than-average volume later Friday or over the weekend to determine future direction. If the crypto breaks above Thursday’s trading range, Shiba Inu is likely to regain the eight-day exponential moving average, which would give bullish traders more confidence going forward.

• Shiba Inu could also continue to trade sideways, settling into a series of inside bars over the weekend. If that happens, traders and investors can watch for a tightening range to take place on lower-than-average volume.
• There’s a possibility the sideways consolidation taking place could be forming a bear flag on Shiba Inu’s chart, with the downward sloping pole formed between Tuesday and Wednesday and the flag forming over the last two 24-hour periods. If the bear flag continues to print and Shiba Inu breaks down bearishly from the formation, the measured move is about 26%, which suggests the crypto could eventually retrace toward $0.00000777.
• Shiba Inu has resistance above at $0.00001081 and $0.00001178 an support below at $0.00000975 and $0.00000856.

See Also: Why Are Bitcoin And Other Cryptos Falling Today?