DOGE in the Need of Soft US Inflation and Elon Musk to Return to $0.10

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) joined the NASDAQ Composite Index in positive territory, with DOGE ending a three-day losing streak.
• Recession jitters subsided, with US economic indicators supporting a December Fed pivot and a bullish NASDAQ session.
• The technical indicators are mixed, reflecting investor uncertainty.

On Thursday, dogecoin (DOGE) rose by 2.92%. Partially reversing a 4.49% slide from Wednesday, DOGE ended the day at $0.0986. Notably, DOGE failed to revisit $0.10 for the first time in 12 sessions.

After a mixed start to the day, DOGE fell to a morning low of $0.0948. Steering clear of the First Major Support Level (S1) at $0.0921, DOGE rallied to a late high of $0.0991. However, coming up short of the First Major Resistance Level (R1) at $0.1004, DOGE eased back to end the day at sub-$0.0990.

Shiba inu coin (SHIB) rose by 1.98% on Thursday. Partially reversing a 2.15% loss from Wednesday, SHIB ended the day at $0.00000927.

A mixed morning saw SHIB fall to an early low of $0.00000906. Steering clear of the First Major Support Level (S1) at $0.00000891, SHIB rallied to a late high of $0.00000933. Coming up against the First Major Resistance Level (R1) at $0.00000932, SHIB eased back to end the day at sub-$0.00000930.

Risk-on Sentiment Muted Concerns over DOGE’s Twitter Future

After a mixed morning session, US economic indicators delivered much-needed support. A modest increase in jobless claims supported the bets of a December Fed pivot. Last week’s Jobs Report had raised uncertainty about the next policy move.

The NASDAQ Composite Index rose by 1.13%, delivering DOGE and SHIB support.

However, there were no updates from Elon Musk on plans to resume integrating DOGE onto the Twitter platform, capping the upside on the day.

Today, the focus will remain on the US economic calendar, with wholesale inflation and consumer confidence due. An unexpected pickup in wholesale inflation could question the Fed pivot theory and send DOGE and SHIB into reverse.

Elon Musk and Twitter news will also influence, however.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.20% to $0.0984. A range-bound start to the day saw DOGE fall to an early low of $0.0977 before finding support.

Technical Indicators

DOGE needs to avoid the $0.0975 pivot to target the First Major Resistance Level (R1) at $0.1002. A return to $0.10 would signal a bullish afternoon session. However, the NASDAQ Composite Index and Twitter updates need to be DOGE-friendly to support a breakout session.

In the event of an extended afternoon breakout session, the bulls could take a run at the Second Major Resistance Level (R2) at $0.1018. The Third Major Resistance Level (R3) sits at $0.1061.

A fall through the pivot ($0.0975) would bring the First Major Support Level (S1) at $0.0959 into play. Barring an extended sell-off, DOGE should avoid sub-$0.0950 and the Second Major Support Level (S2) at $0.0932.

The Third Major Support Level (S3) sits at $0.0889.

The EMAs sent a more bullish signal, with DOGE sitting above the 100-day EMA, currently at $0.0969. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The price signals were bullish.

A breakout from the 50-day EMA ($0.0988) would support a move through R1 ($0.1002) to bring R2 ($0.1018) into play. However, a fall through the 100-day EMA ($0.0969) would bring S1 ($0.0959) and sub-$0.0950 into play.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.11% to $0.00000928. A mixed start to the day saw SHIB fall to an early low of $0.00000922 before rising to a high of $0.00000929.

Technical Indicators

SHIB needs to avoid a fall through the $0.00000922 pivot to target the First Major Resistance Level (R1) at $0.00000938. A return to $0.00000930 would signal a bullish afternoon session. However, SHIB will likely take its cues from the US stats and the NASDAQ Index.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000949. The Third Major Resistance Level (R3) sits at $0.00000976.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000911 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000900 and the Second Major Support Level (S2) at $0.00000895. The Third Major Support Level (S3) sits at $0.00000868.

The EMAs send a bearish signal, with SHIB sitting below the 100-day EMA, currently at $0.00000929. This morning, the 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA. The signals were mixed.

A breakout from the 100-day ($0.00000929) would support a move through R1 ($0.00000938) to target R2 ($0.00000949) and the 200-day EMA ($0.00000956). However, a fall through the 50-day EMA ($0.00000925) would bring S1 ($0.00000911) into view.