Shiba Inu Fluctuates Bitcoin, Ethereum After FTX Bankruptcy: What Happens? – SHIBA INU (SHIB/USD)

by James · November 11, 2022

Shiba Inu SHIB/USD fluctuated wildly between 9 and 10 after the news that the cryptocurrency platform FTX had filed for bankruptcy.

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

Between 09:00 and 09:30 Shiba Inu plunged over 6% before spending the next 30 minutes rebounding almost all the way to the $0.00001 level. Since then, the Shiba Inu has consolidated volatility on smaller timeframes, 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 IIIwho some reports say is the same person who oversaw Enron Corporation bankruptcy.

The news comes as a disappointment after consumer price index data released by US Bureau of Labor Statistics on Thursday morning, inflation showed lower October, coming in at 7.7% against the estimate of 8%. The news boosted the crypto sector and boosted Bitcoin from its lowest in nearly 2 years. Shiba Inu returned almost 17% in unison.

Despite the decline during Friday’s 24-hour trading session, the Shiba Inu continues to trade in an inner bar pattern on the daily chart, which leans slightly bullish because Friday’s candlestick prints near the top of Thursday’s range.

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The Shiba Inu Chart: Traders and investors will want to see the 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, the Shiba Inu is likely to recapture the eight-day exponential moving average, giving bullish traders more confidence going forward.

The Shiba Inu may also continue to act sideways, settling into a variety of poses over the course of the weekend. If that happens, traders and investors can look for a tightening area to take place on lower-than-average volume.

There is a possibility that the sideways consolidation taking place could form a bearish flag on Shiba Inu’s chart, with the downward sloping bar formed between Tuesday and Wednesday and the flag formed over the last two 24-hour periods. If the bearish flag continues to print and the Shiba Inu breaks down bearishly from the formation, the measured move is about 26%, suggesting that the crypto may eventually move back towards $0.00000777.