We’re gonna take a look at technical setups in Shiba Inu & Stellar Lumens, which not only has potential catalysts for volatility on their own, but could also see some action from this week’s bitcoin related event that may get the whole crypto asset space jumping.
The last time we looked at Shiba Inu (SHIB), it had just made a massive +300% rally at the beginning of October, and it looked like a deep pullback was right around the corner. Unfortunately for the bulls, that pullback did come in the form of a 40% drop before the bulls took back control around the 0.00002 level.
Since then, it’s been nothing but sideways action for Shiba Inu, with price action gyrating around the 0.000026 handle, forming a symmetrical triangle in the process. This pattern tends to be closely watched by technical traders, as it is a very price structure to see when volatility and momentum picks up once again.
That could be the case for Shiba Inu, which could see another spike ahead given on the current movement to get the token listed on Robinhood.
Robinhood is where 21 million active traders reside that could get new exposure to the token, and where we saw Dogecoin explode higher after it was listed on the exchange in early 2021. Of course, if Robinhood kills the idea of a listing on their exchange, that could be the catalyst for a downside break in that triangle above.
And as mentioned above, bitcoin could be seeing a lot of action this week as traders anticipate the approval of a bitcoin futures ETF by the SEC. Whether or not this leads to a “sell the news” reaction or the beginning of a massive rally higher in BTC, we’ll just have to wait-and-see, but the odds of BTC dragging around the crypto space are pretty good, which means potentially more volatility may come for Shiba Inu.
The Grayscale Stellar Lumens Trust is now trading live, giving investors wary of joining a cryptocurrency exchange or self-custody a token the chance to gain exposure to Stellar (XLM), the native token of the Stellar Lumens network.
XLM is one of the top 25 crypto assets in the world with a $9.2B market cap, and with +60 projects and growing in the ecosystem, this situation with Grayscale could attract more longer-term investors to both the token and the trust.
In the short-term, we can see in the four hour chart above that traders have been bullish on XLM/USD since the turn of the new month, with the market bottoming out just above 0.25 before climbing to 0.42 last week (a +60% gain). The market is pulling back at the moment, which could be an opportunity for short and longer term bulls to buy at better prices.
We’ll be watching the previous short-term consolidation area between 0.3300 – 0.3700 for a retest and bullish reversal patterns before considering a potential long position.
And again, if bitcoin starts jumping around, that would likely drag around the rest of the crypto space as we’ve seen in the past. If bitcoin dips hard, then we’d likely stay on the sidelines until a solid retest of the 0.3300 handle to see how that market reacts.
But if bitcoin pops higher and drags XLM with it to break 0.4300, then that could potentially draw in momentum players to the long side. 0.4300 was the Summer high before the September dip, so a break there would be a significant one for technical traders.
What do you all think? Will the symmetrical triangle break on SHIB/USD soon? Are there more gains ahead for XLM/USD? Is SHIB a buy? Let me know in the comments section below!