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DOGE Needs to Avoid Sub-$0.0590 to Target $0.0610 with SHIB in Tow

By:
Bob Mason
Published: Oct 18, 2022, 02:39 UTC

It has been a choppy start to the day for DOGE and SHIB. A move through the early highs would support another bullish session.

DOGE and SHIB technical analysis - FX Empire.

Key Insights:

  • It was a bullish Monday session, with shiba inu (SHIB) extending its winning streak to three sessions.
  • Network updates took a back seat for a second session, with investor reaction to US corporate earnings and UK government policy plans delivering support.
  • However, the technical indicators remain bearish, with Fed Fear continuing to leave the pair in tight ranges.

On Monday, dogecoin (DOGE) rose by 1.80%. Following a 0.59% gain on Sunday, DOGE ended the day at $0.05998.

A bearish start to the day saw DOGE fall to an early morning low of $0.05855. Steering clear of the First Major Support Level (S1) at $0.0584, DOGE rallied to a late high of $0.06018. DOGE broke through the First Major Resistance Level (R1) at $0.0594 and the Second Major Resistance Level (R2) at $0.0600 before easing back through R2.

Shiba inu coin (SHIB) rose by 1.07% on Monday. Following a 0.59% gain on Sunday, SHIB ended the day at $0.00001040.

Tracking the broader market, SHIB fell to an early low of $0.00001021. Steering clear of the First Major Support Level (S1) at $0.00001018, SHIB struck an early afternoon high of $0.00001047. SHIB broke through the First Major Resistance Level (R1) at $0.00001040 before falling back to sub-$0.00001030. However, a bullish end to the day saw SHIB retest R1.

Network updates and Fed Fear took a back seat on Monday. A sharp pickup in appetite for riskier assets delivered DOGE and SHIB price support.

The UK Government’s U-turn on the mini-budget and US corporate earnings delivered a bullish session. However, US economic indicators and market sentiment toward Fed monetary policy limited the upside.

Market bets of a 75-basis point Fed rate hike in November and December held steady on Monday.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.86% to $0.05947. A mixed start to the day saw DOGE rise to an early high of $0.06030 before falling to a low of $0.05944.

DOGE under pressure.
DOGEUSD 181022 Daily Chart

Technical Indicators

DOGE needs to move through the $0.0596 pivot to retarget the First Major Resistance Level (R1) at $0.0606. However, crypto news and Fed chatter should be crypto-friendly to support a breakout from the morning high of $0.06030.

In the case of an extended crypto market rally, DOGE should test the Second Major Resistance Level (R2) at $0.0612. The Third Major Resistance Level (R3) sits at $0.0628.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0590 in play. However, barring another crypto sell-off, DOGE should steer clear of sub-$0.0580 and the Second Major Support Level (S2) at $0.0579. Third Major Support Level (S3) at $0.0563.

DOGE support levels in play below the pivot.
DOGEUSD 181022 Hourly Chart

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.05977. The 50-day EMA eased 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 ($0.05977) would give the bulls a run at the 100-day EMA ($0.06037) and R1 ($0.0606). The 200-day EMA sits at 0.06120. However, failure to move through the 50-day EMA ($0.05977) would leave DOGE under pressure.

EMAs bearish.
DOGEUSD 181022 4 Hourly Chart

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.77% to $0.00001032. A choppy start to the day saw SHIB rise to an early high of $0.00001051 before falling to a low of $0.00001032.

The First Major Resistance Level (R1) at $0.00001051 capped the upside early on.

SHIB under pressure.
SHIBUSD 181022 Daily Chart

Technical Indicators

SHIB needs to move through the $0.00001032 pivot to retarget the First Major Resistance Level (R1) at $0.00001051. However, SHIB would need support from the broader market and cautious FOMC member chatter to deliver a sustained bullish session.

A broad-based crypto rally would see SHIB test the Second Major Resistance Level (R2) at $0.00001062. The Third Major Resistance Level (R3) sits at $0.00001088.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00001025 in play. Barring an extended sell-off, SHIB should avoid sub-$0.0000100. The Second Major Support Level (S2) at $0.000001010 should limit the downside.

The Third Major Support Level (S3) sits at $0.00000984.

SHIB support levels in play below the pivot.
SHIBUSD 181022 Hourly Chart

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001041. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.00001041) would support a breakout from R1 ($0.00001051) to give the bulls a run at R2 ($0.00001062). However, failure to move through the 50-day EMA ($0.00001041) would leave S1 ($0.00001025) in view.

EMAs bearish.
SHIBUSD 181022 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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