DOGE and SHIB Face a Testy Session as Recession Fears Resurface

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) found much-needed support on Tuesday.
• Investor fears of a US economic recession took a back seat despite the weak service sector PMI.
• Technical indicators continue to turn bearish, suggesting a downward price trend for DOGE and SHIB.

On Tuesday, Dogecoin (DOGE) rose by 0.62%. Partially reversing a 1.28% fall from Monday, DOGE ended the day at $0.06884. Shiba Inu Coin (SHIB) joined DOGE in the green, rising by 1.22% to end the day at $0.00001331. On Monday, SHIB fell by 2.45%.

A choppy Tuesday session saw DOGE fall to a mid-morning low of $0.06688 before striking a high of $0.06922. SHIB slid to a day low of $0.00001281 before hitting a high of $0.00001338.

DOGE and SHIB left the Major Resistance Levels untested, while SHIB tested the First Major Support Level (S1) at $0.0000128.

On Tuesday, crypto news updates took a back seat, with investors tuned into US economic indicators and the Fed.

US Economic Indicators Deliver Crypto Support

On Tuesday, prelim private sector PMIs from the US delivered crypto market support. According to prelim figures, the US composite PMI fell from 47.7 to 45.0, reflecting a more marked contraction across the private sector.

The all-important services sector was the drag, with the PMI falling from 47.3 to 44.1. With the service sector accounting for more than 70% of the US economy, the latest figures raise the prospect of a US economic recession.

Despite this, the crypto market responded favorably to the numbers. The dire services PMI could force the Fed to take the foot off the gas, a positive for riskier assets. However, recession fears will ultimately be crypto market negative, the Tuesday stats providing just a temporary reprieve.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.83% to $0.00001320.

A mixed start to the day saw SHIB strike an early high of $0.00001356 before sliding to a low of $0.00001320.

SHIB came up against the First Major Resistance Level (R1) at $0.0000135.

Technical Indicators

SHIB needs to avoid a fall through the $0.0000132 pivot to retarget the First Major Resistance Level (R1) at $0.0000135 and the morning high of $0.00001356.

SHIB would need a material shift in risk appetite to support a return to $0.0000135.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000137. The Third Major Resistance Level (R3) sits at $0.0000143.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0000130 into play. Barring another extended sell-off throughout the day, SHIB should avoid sub-$0.0000125. The Second Major Support Level (S2) at $0.0000126 should limit the downside.

The Third Major Support Level (S3) sits at $0.0000120.

The EMAs send a bearish signal, with SHIB sitting below the 100-day EMA, currently at $0.00001340. This morning, the 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

A SHIB move through the 100-day EMA ($0.00001340) would support a run at R1 ($0.0000135) and the 50-day EMA ($0.00001354). However, failure to move through the 100-day EMA would bring S1 ($0.0000130) and the 200-day EMA ($0.00001283) into view.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 1.62% to $0.06772.

A choppy start to the day saw DOGE strike an early high of $0.06918 before falling to a low of $0.06761.

Technical Indicators

DOGE needs to move through the $0.0683 pivot to test the First Major Resistance Level (R1) at $0.0697.

DOGE would need a pickup in market risk appetite to support a breakout from the Tuesday high of $0.06922.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0707. The Third Major Resistance Level (R3) sits at $0.0730.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0674 in play. Barring an extended sell-off, the Second Major Support Level (S2) at $0.0660 should limit the downside.

The Third Major Support Level (S3) sits at $0.0636.

The EMAs sent a bearish signal, with DOGE below the 200-day EMA, currently at $0.07103. This morning, the 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

A move through R1 ($0.0697) would bring R2 ($0.0707) and the 200-day EMA ($0.07103) into play.

However, a bearish cross of the 50-day EMA through the 200-day EMA would bring the Major Support Level into view.