Shiba Inu Smashes Triangle Pattern Against Bitcoin, But Looks Weak Against Dogecoin
Shiba Inu's (SHIB) dollar-denominated price hit a one-month high, charting a bullish trend against Bitcoin. However, the outlook against its rival, dogecoin, doesn't look as promising.
SHIB has gained 5.2% in the past 24 hours, reaching a high of $0.00001255 on Coinbase, the level last seen on June 12. As of writing, the cryptocurrency teased a breakout into bullish territory above the widely tracked 50-day simple moving average (SMA) at $0.00001242.
Key AI insights based on the 24-hour price action
Institutional flows drove prices from $0.00001215 to a peak of $0.00001250 between 19:00 and 20:00 on July 9, with an exceptional institutional volume of 1.25 trillion tokens.
Strong institutional resistance has been established around the $0.00001250 level, significantly exceeding the average daily institutional volume of 491 billion tokens.
An additional 2.54% institutional gains occurred during the final trading hour from July 10, 03:56 to 04:55, advancing from $0.00001244 to $0.00001247.
A session low of $0.00001238, established around 04:15, indicates what institutional traders view as strong technical support within the $0.00001238-$0.00001240 range.
SHIB/BTC breakout
The SHIB/BTC pair listed on CoinEx, which represents SHIB's BTC-denominated price, rose 3.70% Wednesday (UTC), rising out of a triangular consolidation pattern identified by trendlines connecting June 24 and July 3 highs and June 22, June 27 and July 4 lows, according to data source TradingView.
The breakout follows a prolonged year-long downtrend and indicates that the bulls have emerged victorious, having successfully absorbed supply during the triangular consolidation.
The pair, therefore, could continue to gain ground in the short term, supported by a positive MACD histogram, which points to a strengthening of upward momentum. The swing low from May 7, represented by the horizontal line on the chart below, could offer resistance on the way higher.
SHIB/DOGE breaks down
SHIB could underperform DOGE in the coming days, as the Binance-listed SHIB/BTC pair has penetrated a trendline support, marking the end of the recovery rally from May lows.
Furthermore, the indicator appears poised to cross bearish, indicating a negative shift in momentum. The bear cross occurs when the band of short-term exponential moving averages (EMAs) moves below the long-term EMAs.
The pair needs to top the June 24 high of 0.0000719 to negate the bearish outlook.
(Disclaimer:Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to. For more information, see.)
