DOGE Eyes Return to $0.0600 to Target $0.0620, with SHIB on the Move

Key Insights:

• It was a bearish Wednesday session, with dogecoin (DOGE) and shiba inu coin (SHIB) seeing red for the second consecutive session.
• Hawkish Fed chatter and inflation jitters sent riskier assets into negative territory mid-week.
• The technical indicators remain bearish, with Fed Fear continuing to suggest further near-term losses.

On Wednesday, dogecoin (DOGE) fell by 1.81%. Following a 0.36% decline on Tuesday, DOGE ended the day at $0.05869.

After a range-bound morning, DOGE rose to a late afternoon high of $0.06078. However, falling short of the First Major Resistance Level (R1) at $0.0611, DOGE slid to a late low of $0.05821. Finding support at the First Major Support Level (S1) at $0.0585, DOGE wrapped up the day at $0.05869.

Shiba inu coin (SHIB) slid by 3.05% on Wednesday. Following a 2.21% fall on Tuesday, SHIB ended the day at $0.00000986. Notably, SHIB ended the day at sub-$0.000010 for the first time since July 12.

Elon Musk’s Twitter (TWTR) updates failed to provide price support. Investor jitters over persistent inflationary pressures weighed on appetite for riskier assets. September inflation figures for the Eurozone and the UK highlighted the likely need for prolonged policy tightening to bring inflation to target.

Fed chatter added to the bearish mood, with well-known FOMC dove Neel Kashkari talking of persistent inflation and further upside amidst tight labor market conditions. The combination of comments suggested that the Fed could push rates higher and keep them higher for longer.

The NASDAQ 100 fell by 0.85%, with the NASDAQ 100 Mini down 56.75 points this morning.

Later today, US economic indicators and Fed chatter will test investor appetite for riskier assets. Philly Fed Manufacturing and weekly jobless claims will draw plenty of attention. Investors will also need to monitor Fed chatter, with FOMC members Harker and Bowman delivering speeches later today.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 1.63% to $0.05964. A mixed start to the day saw DOGE fall to an early low of $0.05822 before rising to a high of $0.06000.

Technical Indicators

DOGE needs to avoid the $0.0592 pivot to retarget the First Major Resistance Level (R1) at $0.0602 and the Wednesday high of $0.06078. However, crypto news and Fed chatter should be crypto-friendly to support a breakout from the morning high of $0.06000.

In the case of an extended crypto market rally, DOGE should test the Second Major Resistance Level (R2) at $0.0618 and resistance at $0.0620. The Third Major Resistance Level (R3) sits at $0.0644.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0577 into play. However, barring another crypto sell-off, DOGE should steer clear of sub-$0.0570 and the Second Major Support Level (S2) at $0.0567. Third Major Support Level (S3) at $0.0541.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.05965. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The price signals were bearish.

A move through the 50-day EMA ($0.05965) would give the bulls a run at the 100-day EMA ($0.06017) and R1 ($0.0602). However, failure to move through the 50-day EMA ($0.05965) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 1.52% to $0.00001001. A mixed start to the day saw SHIB fall to an early low of $0.00000979 before striking a high of $0.00001005.

Technical Indicators

SHIB needs to avoid the $0.00000983 pivot to target the First Major Resistance Level (R1) at $0.00001021. SHIB would need broader market support to break out from the Wednesday high of $0.00001018.

A broad-based crypto rally would see SHIB test resistance at the Tuesday high of $0.00001051 and the Second Major Resistance Level (R2) at $0.00001057. The Third Major Resistance Level (R3) sits at $0.00001131.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000947 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000930 and the Second Major Support Level (S2) at $0.000000909.

The Third Major Support Level (S3) sits at $0.00000835.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001029. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA sliding back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00001021) and the 50-day EMA ($0.00001029) would support a return to $0.00001050. However, failure to move through the 50-day EMA ($0.00001029) would leave S1 ($0.00000947) in view.