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In a previous article, we covered a previously unseen performance by Shiba Inu token, which resulted in historically low average daily volatility as the asset's price stayed on the same level for the last seven days. Luckily, things have changed today.
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 Shiba Inu is now the flag pattern, which occurs during sharp trends and acts as a "cool-off." Unfortunately, statistics show that most assets drop below the lower border of the pattern and search for a new bottom. Nevertheless, there is a chance that Shiba Inu will see a spike in upward volatility that will have a positive impact 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 gain the same inflow pace, which would allow assets like Shiba Inu and Dogecoin to gain a second breath and show us the results we saw 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.
Tomiwabold Olajide
Gamza Khanzadaev
