Shiba Inu Tries To Follow Dogecoin On The Way Up
The main catalyst for the recent Dogecoin strength was Coinbase’s decision to add Dogecoin to its professional trading platform Coinbase Pro. At this point, Dogecoin is not available on Coinbase’s retail trading platform, but the market expects that it would be added to this platform in the upcoming weeks.
Increased access to Dogecoin is a welcome development for Dogecoin bulls, so it’s not surprising to see that Dogecoin managed to settle above the resistance at $0.3990 and tested the resistance at $0.44.
For Shiba Inu, the recent Dogecoin strength presents an opportunity to gain additional upside momentum in a “sympathy trade”. Shiba Inu’s current market capitalization is about $3.9 billion compared to Dogecoin’s $55.5 billion, and some traders may be willing to bet that Shiba Inu will start to close the gap in case it becomes more popular.
Shiba Inu is currently trying to settle above the nearest resistance level at $0.000010. In case this attempt is successful, it will head towards the next resistance at $0.000012. A move above this level will push Shiba Inu towards the resistance which is located at $0.00001350.
On the support side, the nearest support level for Shiba Inu is located at $0.000008. In case Shiba Inu manages to get below this level, it will move towards the next support which is located near the lows of the previous massive pullback at $0.000007.
From a big picture point of view, Shiba Inu has formed a double bottom pattern and has material chances to gain additional upside momentum. However, traders should note that Shiba Inu will likely remain dependent on Dogecoin’s dynamics as it is still views as “another cryptocurrency with an image of a cute dog”.
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