DOGE and SHIB Find Support After the Wednesday Meltdown

Key Insights:

• It was a bullish session for DOGE and SHIB on Thursday following Wednesday’s sell-off.
• Dip buyers jumped in following Wednesday’s heavy losses fueled by the more hawkish than expected FOMC meeting minutes.
• Technical indicators remain bearish for SHIB, while DOGE holds above the 50-day EMA.

It was a bullish day for DOGE and SHIB on Thursday.

Market jitters toward FED monetary policy eased, supporting a pickup in appetite for riskier assets. While on the rise, DOGE and SHIB trailed the broader crypto market following Wednesday’s heavy losses.

Partially reversing a 16.82% slump from Wednesday, DOGE rose by 1.81% to end the day at $0.1460. SHIB partially reversed an 8.97% slide with a 1.85% gain to end the day at $0.0000248.

Investors Tip Toe Back in After the Wednesday Market Rout

On Wednesday, FED plans for the more aggressive removal of accommodative measures hit the crypto market. The FOMC meeting minutes revealed plans to reduce the FED’s bond holdings by around $95 billion each month.

Sentiment improved marginally on Thursday, with the broader crypto market tracking the U.S equity markets into positive territory.

The pair trailed the crypto frontrunners, with no crypto news pieces to deliver DOGE and SHIB with more significant gains.

DOGE Price Action

At the time of writing, DOGE was up 0.82% to $0.1472.

Technical Indicators

DOGE will need to avoid the day’s $0.1448 pivot to make a run on the First Major Resistance Level at $0.1495. DOGE would need the broader crypto market to support a move through Thursday’s high of $0.1483.

An extended rally would test the Second Major Resistance Level at $0.1530. The Third Major Resistance Level sits at $0.1612.

A fall through the pivot would test the First Major Support Level at $0.1413. Barring another extended sell-off, DOGE should steer clear of sub-$0.1400 levels. The Second Major Support Level sits at $0.1366.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. DOGE sits above the 50-day EMA, currently at $0.1465. This morning, 50-day EMA pulled away from the 100-day EMA. The 100-day EMA pulled away from the 200-day; DOGE positive.

Holding above the 50-day EMA would support a move back through to $0.15.

SHIB Price Action

At the time of writing, SHIB was up 0.52% to $0.00002493.

Technical Indicators

SHIB will need to avoid the day’s $0.0000247 pivot to make a run on the First Major Resistance Level at $0.0000254. SHIB would need the broader crypto market to break back to $0.000025 levels.

An extended rally would test the Second Major Resistance Level at $0.0000260. The Third Major Resistance Level sits at $0.0000274.

A fall through the pivot would bring the First Major Support Level at $0.0000240 into play. Barring another extended sell-off, SHIB should steer clear of sub-$0.0000230 levels. The Second Major Support Level at $0.0000233 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB sits below the 200-day EMA at $0.0000252. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, SHIB negative.

A move through the 200-day EMA would bring $0.000026 levels into play.