DOGE and SHIB in for a Choppy Afternoon as Fed Tension Intensifies

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) joined the broader market in a bullish Monday session.
• However, the gains were modest, with Fed and recession fears limiting the upside.
• The technical indicators are bearish, suggesting price pressure will linger ahead of the Fed policy decision.

On Monday, Dogecoin (DOGE) rose by 1.92%. Partially reversing a 7.65% slide from Sunday, DOGE ended the day at $0.05855.

A bearish start to the day saw DOGE slide to a mid-morning low of $0.05588. Avoiding the First Major Support Level (S1) at $0.0551, DOGE rallied to a late high of $0.05884. However, coming up short of the First Major Resistance Level (R1) at $0.0610, DOGE slipped back to end the day at $0.05855.

Shiba Inu Coin (SHIB) rose by 3.48% on Monday. Partially reversing an 11.06% meltdown from Sunday, SHIB ended the day at $0.00001099.

A choppy start to the day saw SHIB fall to an early morning low of $0.00001051. Steering clear of the First Major Support Level (S1) at $0.0000097, SHIB struck a late high of $0.00001111 before easing back. Despite the bullish second half, SHIB came up short of the First Major Resistance Level (R1) at $0.0000117.

It was another quiet day on the crypto news wires, leaving DOGE and SHIB in the hands of investor sentiment towards the Fed and the economic outlook. Following World Bank and FedEx (FDX) warnings from the previous week, Sunday’s bearish sentiment spilled over to the Monday session.

However, easing bets of a percentage point Fed rate hike and a NASDAQ move into positive territory provide support. On Monday, the NASDAQ 100 rose by 0.76%, with the probability of a percentage point rate hike falling from 21% on Sunday to 19%.

Barring a crypto news event, we expect the NASDAQ and sentiment towards the Fed to continue influencing before tomorrow’s policy decision. This morning, the NASDAQ 100 Mini was down 16 points, with the probability of a percentage point rate hike increasing from 19% to 20% A larger increase would test the support for riskier assets.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.82% to $0.00001090.

A mixed morning saw SHIB fall from an early high of $0.00001104 to a mid-morning low of $0.00001083. Steering clear of the Major Support Levels, SHIB revisited the high of $0.00001104 before easing back.

Technical Indicators

SHIB needs to hold above the $0.00001090 pivot to target the First Major Resistance Level (R1) at $0.0000112.

SHIB would need a pickup in market risk appetite to support a breakout from the morning high of $0.00001104. We expect the NASDAQ 100 Mini and the US markets to influence throughout the US session, with investors focused on the Fed.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000112. The Third Major Resistance Level (R3) sits at $0.0000121.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0000106 into play. Barring another extended sell-off, SHIB should avoid sub-$0.0000100. The Second Major Support Level (S2) at $0.0000103 would likely limit the downside.

The Third Major Support Level (S3) sits at $0.0000097.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001167. 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. Both signals were price negatives.

A move through R1 ($0.0000112) would bring R2 ($0.0000115) and the 50-day EMA ($0.00001167) into view. However, failure to move through the 50-day EMA would give the bears a run at S1 ($0.0000106).

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.13% to $0.05847. A mixed start to the day saw DOGE fall to an early low of $0.05793 before rising to a high of $0.05908.

Technical Indicators

DOGE needs to avoid the $0.0578 pivot to target the First Major Resistance Level (R1) at $0.0596.

Bullish sentiment across the crypto market would support a breakout from the Morning high of $0.05908. In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0607. The Third Major Resistance Level (R3) sits at $0.0637.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0567 into play. Barring another extended sell-off, DOGE should avoid sub-$0.0550 and the Second Major Support Level (S2) at $0.0548. The Third Major Support Level (S3) sits at $0.0518.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.06013. Today, the 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

DOGE needs to move through R1 ($0.0596) to target R2 ($0.0607) and the 100-day EMA ($0.06138). The 200-day EMA sits at $0.06344. However, failure to move through the 50-day EMA would leave S1 ($0.0567) in play.