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Monday, March 27, 2023

Shiba Inu Rocks Wildly With Bitcoin, Ethereum After FTX Bankruptcy: What’s Going On? – SHIBA INU (SHIB/USD)

Shiba Inu SHIB/USD swing wildly between 9am and 10am after news broke that cryptocurrency platform FTX had filed for bankruptcy.

The volatility took place alongside the top cryptocurrencies Bitcoin USD/BTC Y Ethereal EUR/USD.

Between 9am and 9:30am, the Shiba Inu plunged more than 6% before spending the next 30 minutes recovering almost fully to the $0.00001 level. Since then, Shiba Inu has been consolidating volatility on smaller time frames, settling on a series of inside bars on the 15-minute chart.

Meanwhile, the CEO and founder of FTX Sam Bankman-fried announced his resignation from the company. He will be replaced by John Ray IIIwho according to some reports is the same person who oversaw the Enron Corporation bankruptcy.

The news is a disappointment after consumer price index data released by the US Bureau of Labor Statistics Thursday morning showed that inflation eased in October, coming in at 7.7% versus the 8% estimate. The news gave a boost to the cryptocurrency sector and propelled Bitcoin from its nearly 2-year low. Shiba Inu rallied nearly 17% in unison.

Despite the drop during the 24-hour trading session on Friday, the Shiba Inu is still trading in an inside bar pattern on the daily chart, which is sloping slightly to the upside as Friday’s candlestick is printing near the top of the thursday range.

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The Shiba Inu table: Traders and investors will want to see the Shiba Inu break or turn down from Thursday’s mother bar on above average volume later on Friday or through the weekend to determine future direction. If the crypto breaks out of the trading range on Thursday, the Shiba Inu is likely to retake the eight-day exponential moving average, which would give bullish traders more confidence going forward.

  • Shiba Inu could also continue to trade sideways, settling into a series of inside bars over the weekend. If that happens, traders and investors can keep an eye out for a tightening range on below-average volume.
  • There is a possibility that the sideways consolidation taking place is forming a bearish flag on the Shiba Inu chart, with the downward sloping pole forming between Tuesday and Wednesday and the flag forming during the last two 24-hour periods. If the bearish flag continues to print and Shiba Inu breaks down from the formation, the measured move is around 26%, which suggests that the cryptocurrency could eventually pull back towards $0.00000777.
  • Shiba Inu has resistance above $0.00001081 and $0.00001178 and support below $0.00000975 and $0.00000856.

See also: Why are Bitcoin and other cryptocurrencies falling today?

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