Shiba Inu SHIB/USD was seeing some high volatility during Tuesday’s 24-hour trading session, showing comparative weakness to Bitcoin BTC/USD and Ethereum ETH/USD to trade in tandem with Dogecoin DOGE.
On Tuesday morning, the U.S. Labor Department printed consumer price index data for the month of November that came in under expectations and showed inflation is slowing. The news caused the general market and the crypto sector to lift significantly higher, with the S&P 500 opening the trading session up about 2% and Bitcoin rallying about 4.5%.
When the market opened, heavy selling pressure came in and by midday, the S&P 500 had given up most of its gains. Bitcoin and Ethereum were stronger in comparison, hanging on to some of their gains to trade about 2.5% higher.
Shiba Inu, the crypto sector and the general market could be in for another volatile day on Wednesday, when the Federal Reserve is set to announce how high it plans to raise interest rates.
Regardless of chart patterns, many securities will rip higher if the Fed announces a 0.50% raise or surprises with a 0.25% increase, although if the central bank hikes rates by 0.75% for a fifth consecutive time, the markets could plunge significantly.
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The Shiba Inu Chart: From a technical perspective, Shiba Inu could be settling into an inverted cup-and-handle pattern, with the inverted cup developed between Nov. 22 and Dec. 12 and the upward sloping inverted handle beginning to develop on Tuesday.
- Shiba Inu is also trading in a sideways pattern, chopping up and down between $0.00000877 and $0.00000924. When SHIB reacts to the general market move on Wednesday, traders will want to see the crypto break up or down from the pattern on higher-than-average volume to gauge its future direction.
- After a long period of declining volume, Shiba Inu’s trading volume has started to increase, which could suggest interest is returning to the crypto. As of early Tuesday afternoon, Shiba Inu’s volume was measuring in at about 1.38 trillion, compared to the 10-day average of 903.8 billion.
- The long lower wicks on Monday’s and Tuesday’s 24-hour candlesticks indicate that bulls are buying the dip when Shiba Inu falls under $0.00000895. This suggests Shiba Inu is more likely to break up from the sideways pattern.
- Shiba Inu has resistance above at $$0.00000975 and $0.00001081 and support below at $0.00000877 and $0.00000856.
