Dogecoin Killer Shiba Inu, Shows Weakness Compared To Bitcoin, Ethereum: Here’s What To Look For – SHIBA INU (SHIB/USD)

by James · December 13, 2022

Shiba Inu SHIB/USD saw some high volatility during Tuesday’s 24-hour trading session, indicating comparative weakness to Bitcoin BTC/USD and Ethereum ETH/USD to act together with Dogecoin DOGE.

Tuesday morning was US Department of Labor printed consumer price index data for the month of November which came in below expectations and showed that inflation is slowing. The news caused the general market and the crypto sector to lift significantly higher, with S&P 500 opened the trading session with approx. 2% and Bitcoin rally approx. 4.5%.

When the market opened, there was heavy selling pressure and by midday the S&P 500 had given up most of its gains. Bitcoin and Ethereum were stronger in comparison, hanging on to some of their gains to trade around 2.5% higher.

The Shiba Inu, the crypto sector and the overall market could be in for another volatile day on Wednesday, when the Federal Reserve is set to announce how high it plans to raise interest rates.

Regardless of chart patterns, many securities will rip higher if the Fed announces a 0.50% hike or surprises with a 0.25% increase, but if the central bank raises interest rates by 0.75% for the fifth time in a row, markets could plunge significantly.

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The Shiba Inu Chart: From a technical perspective, the Shiba Inu can settle into an inverted cup and handle pattern, with the inverted cup developing between November 22 and December 12, and the upward sloping inverted handle beginning to develop on Tuesday.

Shiba Inu is also trading in a sideways pattern, trading up and down between $0.00000877 and $0.00000924. As the SHIB reacts to the overall market movement on Wednesday, traders will want to see the crypto break up or down from the pattern with higher than average volume to gauge its future direction.

After a long period of declining volume, Shiba Inu’s trading volume has started to increase, which could indicate that interest is returning to the crypto. As of early Tuesday afternoon, Shiba Inu’s volume measured around 1.38 trillion, compared to the 10-day average of 903.8 billion.

The long lower wicks on Monday and Tuesday’s 24-hour candlesticks indicate bulls are buying the dip as the Shiba Inu falls below $0.00000895. This suggests that the Shiba Inu is more likely to break out of the sideways pattern.