DOGE and SHIB See a Mixed Session with Fed Fear Weighing

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) had a choppy morning, with market risk aversion limiting the upside.
• US economic indicators were in focus again, with weaker numbers providing brief support.
• Technical indicators remain bearish, with EMAs pointing to further price declines.

On Tuesday, Dogecoin (DOGE) slid by 3.61%, reversing a 3.33% gain from Monday. Positive US economic indicators sent DOGE to a day low of $0.06005 before ending the day at $0.06153.

Partially reversing a 5.67% gain from Monday, Shiba Inu Coin (SHIB) fell by 2.24% to end the day at $0.0000122. In response to the US economic indicators, SHIB slid to a day low of $0.00001192 before steadying.

US economic indicators sent DOGE, SHIB, and the broader crypto market into negative territory. The stats supported the Fed’s current monetary policy mantra, which remains crypto bearish.

Today’s stats provided modest comfort, with ADP employment change figures falling short of forecasts. However, with the official nonfarm payrolls and wage growth figures out on Friday, the weak numbers briefly impacted investor sentiment.

We expect FOMC member chatter and US economic indicators through the remainder of the week to have more influence on the crypto market. US nonfarm payrolls (NFP) and wage growth figures will be the key stats of the week. Weak NFP numbers could fuel a meme coin revival.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.49% to $0.00001214. A bullish morning saw SHIB rise to a high of $0.00001260 before falling to a low of $0.00001203.

Technical Indicators

SHIB needs to avoid the $0.00001213 pivot to retarget the First Major Resistance Level (R1) at $0.0000127 and the Tuesday high of $0.00001277.

SHIB would need a pickup in market risk appetite to support a breakout from the morning high of $0.00001260.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000131. The Third Major Resistance Level (R3) sits at $0.0000140.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0000118 into play. Barring another extended sell-off, SHIB should avoid sub-$0.0000115 and the Second Major Support Level (S2) at $0.0000114.

The Third Major Support Level (S3) sits at $0.0000106.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001268. This morning, the 50-day EMA fell back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

A SHIB move through the 50-day EMA ($0.00001268) and the 200-day EMA (0.0000177) would bring R1 ($0.0000127) into view.

However, a pullback of the 50-day EMA from the 200-day EMA would bring support levels into play.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 0.23% to $0.06168. A bullish start to the day saw DOGE rise from an early low of $0.06147 to a high of $0.06348.

Technical Indicators

DOGE needs to move through the $0.0620 pivot to target the First Major Resistance Level (R1) at $0.0640 and the Tuesday high of $0.06449.

Sentiment across the crypto market would need to materially improve to support a breakout from the morning high of $0.06348.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0665. The Third Major Resistance Level (R3) sits at $0.0709.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0596 in play. Barring an extended sell-off, DOGE should avoid the Second Major Support Level (S2) at $0.0576.

The Third Major Support Level (S3) sits at $0.0531.

The EMAs sent a bearish signal, with DOGE below the 50-day EMA, currently at $0.065032. Following last week’s bearish crosses, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, both bearish signals.

DOGE will need to move through R1 ($0.0640) to target the 50-day EMA ($0.065032) to target R2 ($0.0665).

However, a pullback from the 50-day EMA would leave the Major Support Levels in view.