The Paw Boxing Between Shiba Inu And Dogecoin Traders Continues, But Can Both Reign Supreme?
Glauber Contessoto, otherwise known as the “Dogecoin Millionaire,” told Benzinga he expects Shiba Inu to plummet due to Shiba Inu being built on the Ethereum network, which has high gas fees and slow transactions.
Dogecoin co-creator Billy Markus decided to take a one-week break from Twitter Monday evening, seemingly due to frustration over the constant fighting between enthusiasts of different cryptos.
“Do want you want with your money, your time, and your platform. Don’t demand others to do what you want with their time, their money, and their platform. Best of luck,” he advised before signing off.
Regardless of what traders and investors believe is the better crypto, Shiba Inu was winning the trading session on Tuesday, trading up about 16% compared to Dogecoin, which was trading just 0.34% higher. Both coins look bullish from a technical standpoint, however, so it may be a case of “The Tortoise and the Hare.”
The Dogecoin Chart: Dogecoin soared 13.35% higher on Sunday and has since been consolidating the move. In its consolidation, it has settled into two separate bullish patterns on the daily chart.
Dogecoin is trading in a double inside bar with the mother bar created on Sunday, the first inside bar on Monday and a second bullish inside bar on Tuesday. The double inside bar pattern is considered bullish because Dogecoin has been trading in an uptrend since reaching an Oct. 12 low of $0.216.
The double inside bars have also shaped up into a bull flag pattern, with the pole created between Oct. 22 and Oct. 24 and the flag formed between Monday and Tuesday. The measured move, if Dogecoin reacts to the pattern, is about 21%, which could indicate the crypto will rise toward the 31-cent level following a break of the pattern.
Both consolidation patterns have helped to drop Dogecoin’s relative strength index (RSI) to a slightly more comfortable level of around 61%. On Sunday the crypto’s RSI was nearing the 70% level which indicated it was reaching overbought territory.
Dogecoin is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.
- Bulls want to see big bullish volume break Dogecoin up from the technical patterns and for the crypto to rise above Sunday’s high of $0.284, to continue the uptrend. Above the level, Dogecoin has resistance near 30 cents and the 32-cent mark.
- Bears want to see big bullish volume drop Dogecoin down below the eight-day EMA, which would negate the bullish patterns. Below the level, Dogecoin has support at $0.248 and near 23 cents.
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The Shiba Inu Chart: Shiba Inu rallied 384% between Oct. 3 and Oct. 7 before entering into a long period of consolidation where the token spent 16 trading days in a sideways pattern below the Oct. 7 high of $0.00003700. On Oct. 24 Shina Inu broke up bullishly from the level and has soared up about 35% over the course of Monday and Tuesday.
Shiba Inu has higher-than-average volume, which indicates an extreme level of interest in the cryptocurrency. By Tuesday afternoon Shiba Inu’s trading volume was over 21.25 trillion compared to the average 10-day volume of 17.65 trillion.
The crypto will eventually need to consolidate the move higher, at least on lower timeframes, to drop its RSI which is currently running hot at about 75%. It should be noted that a stock or crypto’s RSI can remain extended for long periods of time, however.
Like Dogecoin, Shiba Inu is trading above the eight-day and 21-day EMAs, with the eight-day EMA trending above the 21-day, which is bullish. The crypto is becoming extended from the EMAs, which will also likely cause consolidation at some point in the near future.
- Bulls want to see consolidation or for sustained bullish volume push the crypto up over a resistance level at $0.00005670. If Shiba Inu can regain the level as support there is some resistance, if using the four-hour chart, at $0.00006387.
- Bears want to see big bearish volume push Shiba Inu down below the $0.00003700 level, which will cause the crypto to lose support at the eight-day EMA. Below the level, there is further support at $0.00002958.