Baby Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) They consolidated on Tuesday in an inside bar pattern on the daily chart.
Two small cryptocurrencies have been developed to compete with Dogecoin (CRYPTO: DOGE), it is trading on very different paths with Baby Dogecoin blasting towards its all-time high on Oct 30 at $0.0000000005220 recently while Shiba Inu bounced back below the $0.000002958 support and resistance level that has been lifting the cryptocurrency since Oct 23 .
If the Baby Dogecoin and Shiba Inu patterns continue to emerge, Baby Dogecoin traders and investors could win the puppy race to an all-time high, while the Shiba Inu may struggle to rise at four feet, unless it can break through its descending channel.
However, it should be noted that events that affect the direction of the general markets can quickly invalidate patterns, especially in the historically volatile crypto sector. As the saying goes, “The trend is your friend so it isn’t” and any trading position should have a clear stop in place and manage its risk versus reward.
In the news: Baby Dogecoin has been surpassed recently Ethereum (CRYPTO: ETH) to be the most traded cryptocurrency by Binance Smart Chain whales, although whales still hold more Ethereum in their wallets.
By comparison, Shiba Inu added 80,000 new owners in December but the price was down 24.96% during the month, indicating a distribution period as whales sold their positions to many smaller buyers.
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Dogecoin chart: The inside Baby Dogecoin bar pattern created on Tuesday is skewed to the upside as the cryptocurrency was trading higher before the pattern was printed. Both bullish and bearish traders can watch for a breakout of the pattern as late as Tuesday or Wednesday to gauge whether the pattern has been recognized.
- There is a possibility that Baby Dogecoin will also trade sideways or create a double inside bar pattern over the coming days to calm the RSI, which is currently in the overbought territory.
- Even if the cryptocurrency breaks lower from the inside bar pattern, Baby Doge is trading in an uptrend unless it breaks below the Jan 10 low at $0.000000002711.
- Baby Dogecoin has higher resistance at $0.000000003673 and $0.0000000003900 and support below at $0.000000003470 and $0.0000000003199.
Shiba Inu Scheme: Shiba Inu was trading up about 5% on Tuesday but within a bearish inside bar pattern as the cryptocurrency was trading lower before the formation was printed.
- On the positive side, Shiba Inu is trading inside a bearish channel, a pattern that can turn bullish very quickly when the stock or cryptocurrency breaks upward through its upper descending trend line.
- If the cryptocurrency can break through the channel upwards, the next course of action is to reclaim the support at the eight-day EMA, giving it room to trade higher towards the $0.00003450 level and print a higher top.
- Shiba Inu has higher resistance at $0.000002958 and $0.00003607 and support below at $0.00002333 and $0.000001734.