DOGE at Risk of Another Heavy Loss as Integration Hopes Wane

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) saw deep red on Wednesday, with DOGE extending its losing streak to four sessions.
• A silent Twitter and a bearish NASDAQ Index sent DOGE and SHiB into negative territory.
• The technical indicators remain bearish, signaling further losses.

On Wednesday, dogecoin (DOGE) slid by 4.21%. Following a 2.90% loss on Tuesday, DOGE ended the day at $0.0705. Notably, DOGE visited sub-$0.0700 for the first time since October.

A mixed start to the day saw DOGE rise to an early morning high of $0.0740. Coming up short of the First Major Resistance Level (R1) at $0.0756, DOGE slid to a mid-morning low of $0.0692. DOGE fell through the First Major Support Level (S1) at $0.0720 and briefly through the Second Major Support Level (S2) at $0.0705.

Finding afternoon support, DOGE broke back through S2 and S1 before a second visit to sub-$0.0700. However, S2 pegged DOGE back late in the session.

Shiba inu coin (SHIB) slid by 3.18% on Wednesday. Following a 1.68% fall on Tuesday, SHIB ended the day at $0.00000792. SHIB ended the day at sub-$0.00000800 for the first time since June.

A bearish morning saw SHIB slide from an early morning high of $0.00000819 to a mid-morning low of $0.00000779. SHIB fell through the First Major Support Level (S1) at $0.00000802 and the Second Major Support Level (S2) at $0.00000785.

However, finding afternoon support, SHIB revisited $0.00000807 before falling back through S1 and briefly through S2.

COVID-19, the Fed, Recession Fears, and Twitter Send DOGE South

Investor sentiment failed to improve on Wednesday, with Tuesday’s pullback continuing into Wednesday.

Fears of a global economic recession, the effects of a hawkish Fed, and COVID-19 updates from China tested investor sentiment.

While the easing of COVID-19 restrictions was market-positive, concerns over a ramp-up in demand for raw materials raised the threat of another surge in inflation to force central banks into more aggressive steps to bring inflation to target.

However, reports of rising COVID-19 cases in China have led to governments introducing restrictions on travelers from China. Significantly, the surge in new cases also raises the threat of new variants that could lead to border restrictions and new lockdown measures.

For DOGE, a lack of Twitter updates was also bearish, with patience wearing thin on the lack of DOGE integration plans.

Today, Twitter and Elon Musk updates will remain the key driver. However, silence will leave DOGE and SHIB in the hands of the broader crypto market and the NASDAQ Index.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.57% to $0.0701. A mixed start to the day saw DOGE rise to an early high of $0.0709 before falling to a low of $0.0697.

Technical Indicators

DOGE needs to move through the $0.0712 pivot to target the First Major Resistance Level (R1) at $0.0733 and the Wednesday high of $0.0740. A return to $0.0730 would signal a bullish afternoon session. However, the crypto news wires and Twitter news need to be DOGE-friendly to support a breakout session.

In the event of an extended afternoon rally, the bulls could take a run at the Second Major Resistance Level (R2) at $0.0760. The Third Major Resistance Level (R3) sits at $0.0808.

Failure to move through the pivot ($0.0712) would leave the First Major Support Level (S1) at $0.0685 in play. However, barring another extended sell-off, DOGE should avoid sub-$0.0670 and the Second Major Support Level (S2) at $0.0664. The Third Major Support Level (S3) sits at $0.0616.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0753. This morning, the 50-day EMA slid back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA. The price signals were bearish.

A move through R1 ($0.0733) would support a run at the 50-day EMA ($0.0753) and R2 ($0.0760). However, failure to move through the 50-day EMA ($0.0753) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.13% to $0.00000793. A mixed start to the day saw SHIB rise to an early high of $0.00000796 before falling to a low of $0.00000788.

Technical Indicators

SHIB needs to move through the $0.00000797 pivot to target the First Major Resistance Level (R1) at $0.00000814 and the Wednesday high of $0.00000819. A return to $0.00000810 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000837. The Third Major Resistance Level (R3) sits at $0.00000877.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000774 in play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000750. The Second Major Support Level (S2) at $0.00000757 should limit the downside.

The Third Major Support Level (S3) sits at $0.00000717.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000826. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00000814) and the 50-day EMA ($0.00000826) would give the bulls a run at R2 ($0.00000837) and the 100-day EMA ($0.00000845). A breakout from the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.00000826) would leave SHIB under pressure. The 200-day EMA sits at $0.00000880.