DOGE and SHIB Find Early Support with DOGE Eying a Return to $0.090
- Dogecoin (DOGE) and shiba inu coin (SHIB) saw red for a second consecutive day on Thursday.
- Contagion fear gripped DOGE and SHIB, with hawkish Fed chatter adding to the bearish mood.
- The technical indicators remain bearish, with the EMAs signaling further downside.
On Thursday, dogecoin (DOGE) fell by 1.05%. Following a 1.72% loss from Wednesday, DOGE ended the day at $0.0847. Notably, DOGE fell short of $0.090 for the second time in three sessions.
A bullish start to the day saw DOGE rise to an early morning high of $0.0871. Coming up short of the First Major Resistance Level (R1) at $0.0901, DOGE slid to an early afternoon low of $0.0823. However, finding support at the First Major Support Level (S1) at $0.0822, DOGE revisited $0.0860 before falling back into negative territory.
Shiba inu coin (SHIB) slipped by 0.88% on Thursday. Following a 1.19% loss on Wednesday, SHIB ended the day at $0.00000905.
Tracking the broader market, SHIB rose to an early morning high of $0.00000922. Coming up short of the First Major Resistance Level (R1) at $0.00000953, SHIB fell to a low of $0.00000890. However, steering clear of the First Major Support Level (S1) at $0.00000885, SHIB revisited $0.00000914 before falling back into the red.
News of Elon Musk looking for a Twitter leadership change tested buyer appetite for DOGE and SHIB. A change in leadership would raise questions over the integration of DOGE and the anticipated surge in DOGE adoption.
Adding to the bearish sentiment was hawkish Fed chatter and contagion from the collapse of FTX.
This morning, bullish sentiment from across the broader market delivered early support. However, DOGE and SHIB remain at risk of a reversal. Contagion risk and uncertainty over Twitter and crypto integration plans remain headwinds.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was up 1.77% to $0.0862. A mixed start to the day saw DOGE fall to an early low of $0.0844 before rising to a high of $0.0868.
DOGE needs to avoid a fall through the $0.0847 pivot to target the First Major Resistance Level (R1) at $0.0871 and the Wednesday high of $0.0871. A return to $0.0870 would signal a bullish afternoon session. However, the crypto news wires need to be crypto-friendly to support a breakout session.
In the event of an extended afternoon breakout session, the bulls could take a run at the Second Major Resistance Level (R2) at $0.0895 and $0.0900. The Third Major Resistance Level (R3) sits at $0.0943.
A fall through the pivot ($0.0847) would bring the First Major Support Level (S1) at $0.0823 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.0800 and the Second Major Support Level (S2) at $0.0799.
The Third Major Support Level (S3) sits at $0.0751.
The EMAs sent a bearish signal, with DOGE sitting below the 200-day EMA, currently at $0.0890. The 50-day EMA converged on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bearish.
A bearish cross of the 50-day EMA through the 200-day EMA would give the bears a run at S1 ($0.0823) to bring sub-$0.0800 into view. However, a move through the 200-day EMA ($0.0890) and 50-day EMA ($0.0891) would support a breakout from R1 ($0.0871) to target R2 ($0.0895).
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was up 1.44% to $0.00000918. A bullish start to the day saw SHIB rise from an early low of $0.00000904 to a high of $0.00000924.
SHIB broke through the First Major Resistance Level (R1) at $0.00000921 before easing back.
SHIB needs to avoid the $0.00000906 pivot to retarget the First Major Resistance Level (R1) at $0.00000921 and the morning high of $0.00000924. A return to $0.00000925 would signal a bullish afternoon session. However, any further contagion news would test buyer appetite.
In case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000938 and resistance at $0.00000950. The Third Major Resistance Level (R3) sits at $0.00000970.
A fall through the pivot would bring the First Major Support Level (S1) at $0.000008859 into play. Barring another extended sell-off, SHIB should avoid sub-$0.00000880 and the Second Major Support Level (S2) at $0.00000874.
The Third Major Support Level (S3) sits at $0.00000842.
The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000956. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.
A move through R1 ($0.00000921) would give the bulls a run at R2 ($0.00000938) and the 50-day EMA ($0.00000956). However, failure to move through the 50-day EMA would leave SHIB under pressure.