DOGE Eyes a Return to $0.062, with SHIB also Finding Early Support

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) joined the broader market in the deep red on Tuesday.
• While the US CPI report for August did the damage, DOGE returned to the crypto top ten.
• Technical indicators are bearish, suggesting price pressure to persist through to the Fed policy decision.

On Tuesday, Dogecoin (DOGE) slid by 6.75%. Reversing a 0.37% gain from Monday, DOGE ended the day at $0.05965.

After a mixed start, DOGE rose to a mid-day high of $0.06420 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.0654, DOGE slid to a low of $0.05921.

DOGE fell through the First Major Support Level (S1) at $0.0626) and the Second Major Support Level (S2) at $0.0612 to end the day at sub-$0.060.

Following a 1.00% loss on Monday, Shiba Inu Coin (SHIB) slid by 6.06% to end the day at $0.0000121.

Tracking the broader market, SHIB rose to a mid-day high of $0.00001307 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.0000133, SHIB slid to a low of $0.0000119. SHIB fell through the First Major Support Level (S1) at $0.0000125 and the Second Major Support Level (S2) at $0.0000121 before wrapping up the day at $0.0000121.

For DOGE and SHIB, news of Twitter shareholders voting in favor of Elon Musk’s $44 billion offer failed to provide support. The $258 billion lawsuit is likely to be limiting Musk’s influence on meme coins.

However, US economic indicators did influence, with the US CPI report for August sending DOGE and SHIB into the deep red.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 1.90% to $0.00001233.

A bullish start to the day saw SHIB rise from an early low of $0.00001201 to a high of $0.00001234.

Technical Indicators

SHIB needs to move through the $0.0000124 pivot to target the First Major Resistance Level (R1) at $0.0000128 and the Tuesday high of $0.00001307.

SHIB would need a pickup in market risk appetite to support a return to $0.0000125. Today, US wholesale inflation figures will influence. A higher number could test investor appetite for riskier assets.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000135. The Third Major Resistance Level (R3) sits at $0.0000147.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0000116 in play. Barring another extended sell-off, SHIB should avoid sub-$0.0000110. The Second Major Support Level (S2) at $0.0000112 should limit the downside.

The Third Major Support Level (S3) sits at $0.0000100.

The EMAs send a bearish signal, with SHIB sitting below the 200-day EMA, currently at $0.00001265. This morning, the EMAs converged, signaling an imminent move.

A SHIB move through the EMAs would support a run R1 ($0.0000128) to bring R2 ($0.0000135) into view. However, failure to move through the EMA’s would leave S1 ($0.0000116) in play.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 1.18% to $0.06035. A mixed start to the day saw DOGE fall to an early low of $0.05911 before rising to a high of $0.06042.

Technical Indicators

DOGE needs to move through the $0.0610 pivot to target the First Major Resistance Level (R1) at $0.0628 and the Tuesday high of $0.06420.

Bullish sentiment across the global financial markets would support a return to $0.0620. With investor focus returning to US inflation, the NASDAQ 100 will likely be the key driver today.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0660. The Third Major Resistance Level (R3) sits at $0.0710.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0578 in play. Barring another extended sell-off, DOGE should avoid sub-$0.0570 and the Second Major Support Level (S2) at $0.0560. The Third Major Support Level (S3) sits at $0.0510.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.06269. Today, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

DOGE needs to break out from the 50-day EMA ($0.06269) and R1 ($0.0628) to target the 100-day EMA ($0.06342) and the 200-day EMA ($0.06517). However, failure to move through the 50-day EMA would leave S1 ($0.0578) in play.