DOGE Retraces Tuesday’s Twitter Breakout with a FED Fueled 16.8% Slump

Key Insights:

• It was a bearish session for DOGE and SHIB on Wednesday.
• Market sentiment towards FED monetary policy and reaction to the FOMC meeting minutes weighed.
• Technical indicators have turned bearish for SHIB, while DOGE holds above the 100-day EMA.

It was a bearish day for DOGE and SHIB on Wednesday.

Market sentiment towards FED monetary policy sank DOGE and SHIB, with the FOMC meeting minutes adding to the crypto market angst mid-week.

Reversing a 16.17% jump from Tuesday, DOGE tumbled by 16.82% to end the day at $0.1434. SHIB reversed a 1.13% gain with an 8.97% slide to end the day at $0.00002435.

FED Monetary Policy Sinks DOGE and SHIB

Following this week’s news of Elon Musk taking a seat on the board of Twitter (TWTR), the market focus shifted to monetary policy mid-week.

Plans for the more aggressive removal of accommodative measures hit the crypto market overnight. On Wednesday, the FOMC meeting minutes revealed plans to reduce the FED’s bond holdings by around $95 billion each month.

DOGE Price Action

At the time of writing, DOGE was down by 0.07% to $0.1433. A mixed start to the day saw DOGE rise to an early morning high of $0.1444 before easing back.

Technical Indicators

DOGE will need to move through the day’s $0.1532 pivot to make a run on the First Major Resistance Level at $0.1645. DOGE would need the broader crypto market to support a move to $0.16 levels.

An extended rally would test the Second Major Resistance Level at $0.1857 and resistance at $0.19. The Third Major Resistance Level sits at $0.2182.

Failure to move through the pivot would test the First Major Support Level at $0.1320. Barring another extended sell-off, DOGE should steer clear of sub-$0.1300 levels. The Second Major Support Level sits at $0.1207.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. DOGE sits above the 100-day EMA, currently at $0.1410. This morning, 50-day EMA narrowed to the 100-day EMA. The 100-day EMA flattened on the 200-day EMA; DOGE negative.

A move through the 50-day EMA at $0.1470 would support a return to $0.16.

SHIB Price Action

At the time of writing, SHIB was up by 0.49% to $0.00002447. A bullish start to the day saw SHIB rise to an early morning high of $0.00002456.

Technical Indicators

SHIB will need to move through the day’s $0.0000251 pivot to make a run on the First Major Resistance Level at $0.0000261. SHIB would need the broader crypto market to break back to $0.000026 levels.

An extended rally would test the Second Major Resistance Level at $0.0000278 and resistance at $0.000028. The Third Major Resistance Level sits at $0.0000304.

Failure to move through the pivot would bring the First Major Support Level at $0.0000234 into play. Barring another extended sell-off, SHIB should steer clear of sub-$0.0000230 levels. The Second Major Support Level sits at $0.0000225.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB sits below the 200-day EMA at $0.0000252. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, SHIB negative.

A move through the 100-day EMA at $0.0000256 would bring $0.000027 levels into play.