Dogecoin (CRYPTO: DOGE) and Shiba inu (CRYPTO: SHIB) have recently traded in unison despite the fact that enthusiasts of each cryptocurrency remain in fierce competition with each other.
Each of the last seven crypto candlesticks printed on the daily chart is almost identical and on Friday both Dogecoin and Shiba Inu appeared to be printing a reversal signal, albeit slightly differently. If the reversal candlesticks are recognized, Dogecoin and Shiba Inu could experience an uptrend change.
It should be noted that events affecting the direction of general markets can quickly invalidate patterns, especially in the historically volatile crypto industry. As the saying goes, “the trend is your friend until it isn’t” and any trader position should have a clear stop in place and manage their risk versus their reward.
Both cryptos have spent the last six 24-hour trading sessions moving sideways to the left side of the chart to consolidate the December 4 crypto market flash crash when Bitcoin fell more than 20% before rebounding slightly. . The flash crash was slightly milder for Shiba Inu, who fell about 27% on that date compared to Dogecoin’s 32% slide.
See also: Bitcoin, Ethereum, Dogecoin Slide – Analyst suggests other factors contributing to crypto carnage alongside Evergrande woes
The Dogecoin table: Dogecoin was working on printing a doji candlestick on Friday, indicating that the crypto could trade higher on Saturday.
- Dogecoin may tighten into a pennant pattern on the daily chart and may start making a series of lower highs and lows as its 24 hour trading range decreases.
- If the crypto continues to trade in the pattern, it will peak on December 13, and traders can watch for entry of above-average bullish or bearish volume at the break of the flag to assess whether the formation has been. recognized.
- Dogecoin has resistance above 19 cents and the 21 cents level and key support below 16 cents.
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The Shiba Inu painting: On Friday, Shiba Inu was working on the impression of an inverted hammer candlestick, which is often found at the bottom of a downtrend.
- Like Dogecoin, Shiba Inu may be tightening up in a pennant formation, but with the top falling on December 12. Traders can also watch above average volume to enter a pattern breakout.
- Unlike Dogecoin, which has a relative strength index registering in oversold territory below the 30% level, Shiba Inu’s RSI stands at around 40%, which could indicate that the crypto has room for lower more.
- Shiba Inu has resistance above $ 0.00003881 and $ 0.0004491 and support below $ 0.00003209 and $ 0.00002801.
Image by Petra Göschel from Pixabay