Shiba Inu successfully breaks 7-day streak of almost no volatility
In a previous article, we covered a previously unseen performance by the Shiba Inu token, which resulted in historically low average daily volatility as the asset’s price remained at the same level for the past seven days. Fortunately, today things have changed.
According to the daily chart of Shiba Inu, the token successfully broke the stalemate we saw previously and is now moving to the upper border of the range formed back in July. If the token reaches the upper border, we are going to see a consolidation In which the asset will either rush to the next resistance levels or reverse to the lower border of the range.
The formation we can see on the Shiba Inu is the now flag pattern, which occurs during bullish trends and acts as a “cool-off”. Unfortunately, the data suggests that most assets move below the lower boundary of the pattern and look for a new bottom. Nevertheless, there is a chance that the Shiba Inu will see an increase in upward volatility which will have a positive effect on the price.
The market has already confirmed the pattern formation with the help of volume profiles that show a descending dynamic usual for this kind of pattern. We will most likely see a spike in trading volume once SHIB breaks the local resistance level and exits the chart pattern.
The cryptocurrency market is still struggling to regain the same flow momentum, which will allow assets like Shiba Inu and Dogecoin to take a second breath and show the results we have seen back in 2021.
At press time, SHIB is changing hands at $0.0000012 and showing a mild 2.5% price increase in the last 24 hours.