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Volatile days for SHIB ahead as triangular breakout pattern in play

Volatile days for SHIB ahead as triangular breakout pattern in play
Jordan
Major
7 months ago
2 mins read

Shiba Inu (SHIB) traders may anticipate a turbulent few days ahead due to a triangle breakout pattern presently in action on the charts of the decentralized cryptocurrency.

Indeed, on the SHIB/USDT chart, we can observe a breakout triangle pattern in play, suggesting that a move in either direction is imminent. However, since there has been so little volume recently, it seems that the downward breakout is the more realistic scenario.

SHIB/USDT chart – triangle pattern. Source: TradingView.com

The chart uses both the 9 and 50 exponential moving average (EMA) since it provides more weight and significance to recent SHIB data points than a simple moving average (SMA) or a general moving average (MA).

Although there is bullish momentum on both the EMA 9 and the EMA 50, the critical signal is that SHIB trading volume has significantly decreased. 

It is worth noting that on October 11, SHIB witnessed twice as much trading volume in 24 hours as Dogecoin (DOGE) despite having a market cap roughly three times smaller, making the token the sixth most traded asset on the cryptocurrency market at the time.

Opportunity for SHIB whales 

It’s worth mentioning that the last significant purchase recorded was on October 18, 2021, when a SHIB whale just bought 39,462,799,009 valued at ($1,122,094), as per @WhalesStats.

Likewise, whales are probably aware of this movement. Thus a substantial “whale dump” might be on the horizon as decreasing volume confirms the general decline in interest around the asset.

SHIB price 

Currently, the token competitor to Dogecoin is now trading at $0.00002848, up 2.48% in 24 hours and down 2.18% in the last week, with a market capitalization of $11.2 billion, according to CoinMarketCap.com statistics.

Shiba Inu 7 day price chart: Source: CoinMarketCap.com

Notably, yesterday SHIB failed to capitalise on the market momentum as Bitcoin broke past its previous all time high, despite being the most used non-stablecoin on the Ethereum (ETH) network in the last seven days. Uniquely, yesterday apart from stablecoins and SHIB, every other currency in the top 20 cryptocurrencies by market cap was trading in the green.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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