DOGE and SHIB Struggle, with Technical Indicators Flashing Red

Key Insights:

• DOGE and SHIB saw red on Thursday.
• Risk aversion stemming from Russia’s continued bombing of Ukraine weighed.
• On Thursday, market reaction to U.S inflation also tested investor appetite.

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

Reversing a 3.67% gain from Wednesday, DOGE fell by 3.79% to end the day at $0.1168. SHIB reversed Wednesday’s 4.10% rise, sliding by 5.08% to end the day at $0.00002263.

Russia and U.S Inflation Weighed

On Thursday, hopes of progress towards an end to Russia’s invasion of Ukraine faded. News reports continued to cover Russian bombings of civilian targets as more multinational companies pulled the plug on Russia.

Adding to the market angst on Thursday was another pickup in U.S inflation. In February, the annual rate of inflation accelerated from 7.5% to 7.9%. Consumer prices may go even higher in March due to surging energy prices.

Market sentiment towards Biden’s Executive Order (EO) also took a twist. Initial Market response to the EO had been positive on Wednesday. By Thursday, it was apparent that sentiment towards the EO was mixed. While some viewed the EO favoring innovation and digital assets, others considered the EO protective.

For SHIB, Thursday’s early losses come despite talk of Turkey adopting the meme coin. According to crypto news outlets, Turkey’s Minister of Economy Mustafa Elitas met with the SHIB army representatives to discuss SHIB adoption. Interest in SHIB stems from the depreciation of the Turkish Lira.

DOGE Price Action

At the time of writing, DOGE was down by 0.43% to $0.1163.

Technical Indicators

DOGE will need to move through the day’s $0.1178 pivot to make a run on the First Major Resistance Level at $0.1208. DOGE would need the broader crypto market to support a move back through to $0.12 levels.

Another extended rally would test the Second Major Resistance Level at $0.1249 and resistance at $0.13. The Third Major Resistance Level sits at $0.1320.

Failure to move through the pivot would bring the First Major Support Level at $0.1137 into play. Barring an extended sell-off, DOGE should steer clear of sub-$0.11. The Second Major Support Level at $0.1107 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE remains below the 50-day EMA, currently at $0.1219. This morning, the 50-day EMA has fallen further back from the 100-day EMA, pressuring DOGE. The 100-day EMA has also pulled back from the 200-day EMA, bringing the Major Support Levels into play.

A move through the 50-day EMA would support a run at $0.1250.

SHIB Price Action

At the time of writing, SHIB was down by 0.66% to $0.00002248.

Technical Indicators

SHIB will need to move through the day’s $0.0000230 pivot to make a run on the First Major Resistance Level at $0.0000236. SHIB would need the broader crypto market to support a move back through to $0.000023 levels.

Another extended rally would test the Second Major Resistance Level at $0.0000249 and resistance at $0.000025. The Third Major Resistance Level sits at $0.0000260.

Failure to move through pivot would bring the First Major Support Level at $0.0000220 into play. Barring an extended sell-off, SHIB should steer clear of sub-$0.000020 levels. The Second Major Support Level at $0.0000215 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB currently sits below the 50-day EMA at $0.0000237. This morning, the 50-day EMA has pulled back from the 100-day EMA, weighing on SHIB. The 100-day EMA has also pulled back from the 200-day EMA, further pressuring SHIB.

A move through the 50-day EMA would support a run at $0.000025 levels.