Shiba Inu SHIB/USD was plunging over 20% at one point Tuesday afternoon, in tandem with the broader crypto sector, which is seeing high levels of volatility in Bitcoin BTC/USD and Ethereum ETH/USD.
Dogecoin DOGE/USD sank almost 30% before bouncing up off the 200-day simple moving average (SMA).
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-120x86.jpg)
Between 9 p.m. and midnight on Monday, Bitcoin slid 5%. Bulls came in and bought the dip on Tuesday morning, causing the apex crypto to surge 7.5% before massive selling pressure entered after noon, dropping Bitcoin down almost 15% from Monday’s closing price.
Bitcoin then bounced up off a solid support level near $17,580, which Benzinga pointed out earlier on Tuesday. The rebound caused Shiba Inu to jump up from the $0.00000930 low-of-day.
Shiba Inu’s plummet caused the crypto to break down from a descending triangle pattern on the daily chart, which is the most likely scenario when that formation appears.
The “Dogecoin Killer” developed the pattern just under the 200-day simple moving average beginning Oct. 29, which indicated that bullish traders were struggling to turn the sentiment in the crypto.
The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.
The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs. When the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.
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The Shiba Inu Chart: Shiba Inu faced a hard rejection from the 200-day SMA multiple times, fell back into the descending triangle pattern and broke down bearishly. The plummet caused the crypto to hit the Oct. 13 low-of-day, which acted as support and created a bullish double bottom pattern.
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-350x250.jpg)
