Shiba Inu (CRYPTO: SHIB) was trading up almost 50% higher at one point Tuesday, after the crypto busted up through two resistance levels at $0.00001406 and $0.00001799. According to Cointrendz data, Shiba Inu had more mentions than Dogecoin (CRYPTO: DOGE) and Bitcoin (CRYPTO: BTC) on Twitter.

Historically, Crypto whales have held a large percentage of Shiba Inu’s available tokens. Initially, Ethereum (CRYPTO: ETH) Co-Founder Vitalik Buterin owned 50% of all available Shiba Inu coins before donating $1 billion to India’s COVID-19 relief fund and burning the remainder.

On Monday it was reported an anonymous whale locked up six trillion Shib tokens on Friday and on Saturday topped up the stake with a purchase of another 276 billion Shiba Inu coins. Shiba Inu has a circulating supply of 394.7 billion tokens.

See Also: How to Buy Shiba Inu Coin

The Shiba Inu Chart: On Monday, Shiba Inu printed a big bullish green candlestick but fell slightly under the resistance level of $0.00001406 after surpassing the level briefly. The move higher was made on large bullish volume, which indicated high levels of interest had returned to the crypto, and Shiba Inu continued its run north with a second day of huge volume.

By midafternoon Tuesday, Shiba Inu’s daily volume stood about over 14.4 million compared to the 10-day average of 2.55 million. Bullish traders will want to watch for an eventually bearish volume climax as when the crypto eventually runs into profit takers.

Shiba Inu’s relative strength index was measuring in at about 89% on Tuesday, which puts the crypto square into overbought territory. When a stock or crypto’s RSI exceeds 70%, it can be a sell signal for technical traders although the RSI can stay extended for long periods of time due to momentum.

Shiba Inu is trading well 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 well above the 50-day simple moving average and on Oct. 2 both EMAs crossed above the 50-day SMA, which is bullish.

  • Bulls want to see eventual sideways consolidation take place on low volume to drop Shina Inu’s RSI back down below the 70% level. Consolidation would help the crypto gather the strength to make another bullish move to the upside. Shiba Inu has resistance at $0.00002221 and $0.00002801.
  • Bears will want to wait for a bearish volume climax to drop the crypto down quickly below a support level at $0.00001799. Below the level, there is support at $0.00001406 and $0.00000986.

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Photo: Anna Shvets from Pexels

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