According the chart, it looks like SHIBUSD is simply digesting the large gains it had last week in a short amount of time. It appears to be respecting this bull flag pattern during its choppy consolidation on the hourly chart. If you look at the Daily chart, it is just resting as a high tight flag which shows extreme bullishness. I have a stop set below the first pivot on the hourly chart that seemed to be the lowest. There are 2 possible scenarios that I can see if it undercuts that lowest pivot on the hourly:
1. It undercuts and shakes out "weak hands" until there is no more selling and it rallies from there.
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2. It undercuts, people hold until the next small rally and then sell; thus, pushing lower prices for a little while.
TLDR: Looks bullish longer term with a little healthy consolidation needed in the short-term. I would love to see it finally break and hold above the 50 SMA on the hourly chart.
1. It undercuts and shakes out "weak hands" until there is no more selling and it rallies from there.
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2. It undercuts, people hold until the next small rally and then sell; thus, pushing lower prices for a little while.
TLDR: Looks bullish longer term with a little healthy consolidation needed in the short-term. I would love to see it finally break and hold above the 50 SMA on the hourly chart.
Trade active:
I went ahead and added my full position (100% account equity) on the break of the bull flag. With stocks, I never average down; however, I feel this crypto currency has a lot of upside potential comparatively to the risk.