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Shiba Inu turning bullish after breaking above the triangle

Shiba Inu Finally Turns Bullish on Coin Burn, Breaking Above the Triangle

Posted Monday, August 9, 2021 by
Skerdian Meta • 2 min read

Certain cryptocurrencies were looking increasingly bearish after the crypto market crash in May. Cryptocurrencies are all a bit strange in one way or another, but certain cryptos are even stranger, such as the meme coins, like the Doge coin or the Shiba Inu coin.

The stranger ones had a harder time during the bearish period of the last few months, from the middle of May. The situation in such cryptos was looking pretty dim, with sellers remaining in total control and the highs getting lower continuously.

In fact, from early July, we didn’t see any decent bounce higher whatsoever, suggesting that buyers had all gone somewhere else. In fact, SHIB/USD has even been declining during the last three weeks, after most of the crypto market made a sudden reverse higher and kept the bullish momentum going.

Shiba Inu Analysis – Shib/USD Daily Chart

Shiba Inu, on the other hand, wasn’t showing any signs of life whatsoever. We didn’t see any bounce in this cryptocurrency, but the situation might have changed here as well, with the crypto market continuing to push higher, thus pulling the stranger digital coins up with it.

Moving averages, such as the 20 SMA (gray) and the 50 SMA (yellow), were providing resistance for Shiba Inu, which was headed toward the tightening angle of the larger triangle. On Saturday, the price suddenly jumped higher, pushing above the descending trendline. Now the 50 SMA has turned into support for SHIB/USD on the daily chart.

Shiba Inu Analysis – SHIB/USD H4 Chart

Shiba Inu reversing higher from the 20 SMA on the H4 chart today

On the H4 timeframe chart, we see that Shiba Inu pushed above the moving averages, sending the price nearly 50% higher. Yesterday we saw a retreat lower, but the price reversed higher above the 20 SMA (gray), so Shiba Inu is turning bullish again, after two pin-hammer candlesticks, which is different from what we have seen in the previous months when SHIB/USD was really bearish.

So, Shiba Inu is also turning bullish now, and the fundamentals seem to be helping it. Shiba Inu developers have announced a coin burn, along with new Shiba pairs to be listed on the decentralized exchange (DEX) ShibaSwap. Burning removes a number of coins from circulation and keeps a handle on the inflation model. So, that announcement helped Shiba jump higher, and now it is joining the bullish momentum of the crypto market. Our bias against SHIB/USD is now changing, and we will try to buy the pullbacks lower to the 20 or the 200 SMA on the H4 chart. Follow it on our forex signals session.

Shiba Inu Live Chart

SHIB/USD
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