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Crypto Update: Has Shiba Inu started a new breakout?

November 12, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re looking at Shiba Inu (SHIBUSD) as price has started to complete a breakout from its current price pattern.

There is a descending triangle pattern shown below on Shiba Inu’s 4H price chart. After buyers rocketed to new all-time highs back in October, we’ve seen a slow grinding decline that set up a base at .00004648. The series of lower highs shaped the top of the pattern creating a descending triangle.

These patterns can be seen as bullish and bearish, depending on the current trend and breakout direction. In this case, we have a breakout higher in an uptrend so we will be looking for further prices while the breakout remains valid. Buyers moved out of the pattern yesterday but, for now, we are seeing a consolidation set up after the breakout. This could be seen as a small worry but while price holds above the breakout point we will continue to call it valid.

Two points to watch. First, is resistance seen at .00005700. We want to see this level beaten to continue to show that buyers hold momentum to carry forward with the breakout. Second, if sellers can take price back down to support and or, close below it we would start to question this breakout and start to lean towards a fail. If price can re-hold at support we will look for new evidence supporting buyer demand.

Shiba Inu 4H Chart

All times are AEDT.