‘Dogecoin Killer’ Shiba Inu Falling Off Cliff As Crypto Sector Takes Serious Downturn: What To Watch – SHIBA INU (SHIB/USD)

by Arthur · November 8, 2022

Shiba Inu SHIB/USD plunged over 20% at one point on Tuesday afternoon, in line with the broader crypto sector, which is seeing high levels of volatility in Bitcoin BTC/USD and Ethereum ETH/USD.

Dogecoin DOGE/USD fell nearly 30% before bouncing off the 200-day simple moving average (SMA).

Between 9pm and midnight on Monday, Bitcoin fell 5%. Bulls came in and bought the dip on Tuesday morning, sending the apex crypto up 7.5% before massive selling pressure came in after noon, sending Bitcoin down nearly 15% from Monday’s close.

Bitcoin then bounced off a solid support level near $17,580, which Benzinga pointed out earlier on Tuesday. The rebound saw Shiba Inu jump from $0.00000930 on the day.

Shiba Inu’s fall caused the crypto to break down from a descending triangle pattern on the daily chart, which is the most likely scenario when that formation emerges.

The “Dogecoin Killer” developed the pattern just below the 200-day simple moving average from October 29, indicating that bullish traders were struggling to reverse sentiment in the crypto.

The 200-day SMA is an important watch. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, while a stock trading below the 200-day SMA is considered to be in a bear cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a dead cross occurs. When the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.

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The Shiba Inu Chart: Shiba Inu faced a hard rejection from the 200-day SMA several times, fell back into the descending triangle pattern and broke down bearishly. The fall saw the crypto hit its October 13 intraday low, which acted as support and created a bullish double bottom pattern.

After making the double bottom pattern, bulls came in and bought the dip, sending the Shiba Inu up over 8% from the day’s lows.

If the crypto can close Tuesday’s 24-hour trading session with a significantly lower wick, the Shiba Inu will tap a hammer candlestick, which could indicate that a further bounce awaits on Wednesday.

If the Shiba Inu closes the trading session close to the day’s low, the crypto will hit a bearish Marubozu candlestick, which could indicate lower prices are in the cards. Finally, the crypto will enter a sideways consolidation pattern on decreasing volume to digest Tuesday’s high volatility levels.

Shiba Inu’s plunge during Tuesday’s session occurred on higher-than-average volume, which is a potential warning sign for the bulls. From Tuesday afternoon, Shiba Inu’s volume is on Coin base COIN was measured at around 6.2 trillion compared to the 10-day average of 4.33 trillion.