DOGE Return to $0.100 Hinged on the Fed Despite Musk Support
- Dogecoin (DOGE) and shiba inu coin (SHIB) joined the broader crypto market in a bullish Tuesday session, with DOGE resuming its run toward $0.100.
- US economic indicators and Elon Musk supported the DOGE breakout session.
- The technical indicators remain bullish, signaling further price gains.
Dogecoin (DOGE) rallied by 8.60% on Tuesday. Reversing a 1.78% loss from Monday, DOGE ended the month up 36.95% to $0.0960.
A mixed start to the day saw DOGE slip to an early low of $0.0881 before making a move. Steering clear of the First Major Support Level (S1) at $0.0844, DOGE rallied to a late high of $0.0980. DOGE broke through the First Major Resistance Level (R1) at $0.0926 and briefly through the Second Major Resistance Level (R2) at $0.0969 before easing back.
Shiba inu coin (SHIB) rose by 2.52% on Tuesday. Partially reversing a 4.56% slide from Monday, SHIB ended the month up 46.34% to $0.00001181.
Tracking the broader market, SHIB fell to an early low of $0.00001144 before making a move. Steering clear of the First Major Support Level (S1) at $0.00001110, SHIB rallied to an early morning high of $0.00001199. Falling short of the First Major Resistance Level (R1) at $0.00001204, SHIB fell back to sub-$0.00001160 before finding late support.
Elon Musk and the US Economic Indicators Delivered a Pre-Fed Boost
There were no updates from the Shibarium Network to support a SHIB breakout, leaving the broader crypto market to provide direction. The Shibarium upgrade remains the key driver for SHIB, with the bulls expecting a SHIB breakout on improved transaction fees and transaction speeds and increased SHIB burn rates.
However, DOGE enjoyed an Elon Musk-fueled rally. Investors continued to respond to Elon Musk’s call for the integration of DOGE onto the Twitter payment platform. The plans to include DOGE as a payment option and Elon Musk’s renewed support brings the November 2022 high of $0.1589 into play. Twitter silence and the collapse of FTX had led DOGE to a December 30 low of $0.0660.
Subsiding FTX contagion risk and the DOGE payment option on Twitter present a bullish DOGE outlook.
US economic indicators and the NASDAQ Index also contributed to the breakout session. US economic indicators eased fears of a hawkish Fed Chair Powell conference later today. However, uncertainty remains, with the US employment rate of 3.5% sitting well below the Fed’s 5% mandate.
A hawkish Fed Chair talking of the need to push ahead with rate hikes at the expense of the US economy could spook investors.
However, network updates will remain an area of interest. Investors should monitor the crypto news wires and Twitter for updates from the Dogecoin Foundation, Elon Musk, and the Shibarium Network.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was down 3.44% to $0.0927. A mixed start to the day saw DOGE rise to an early high of $0.0973 before falling to a low of $0.0916.
DOGE needs to move through the $0.0940 pivot to target the First Major Resistance Level (R1) at $0.100. A move through the Tuesday high of $0.0980 would signal a bullish DOGE session. However, the Fed Chair Powell and network updates need to be DOGE-friendly to support a breakout session.
In the event of an extended rally, the Second Major Resistance Level (R2) at $0.1039 would likely come into play. The Third Major Resistance Level (R3) sits at $0.1138.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0901 in play. However, barring an extended sell-off, DOGE should avoid sub-$0.0850 and the Second Major Support Level (S2) at $0.0841. The Third Major Support Level (S3) sits at $0.0742.
The EMAs sent a bullish signal, with DOGE sitting above the 50-day EMA, currently at $0.0890. This morning, the 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The price signals were bullish.
A hold above the 50-day EMA ($0.0890) would support a breakout from R1 ($0.100) to bring R2 ($0.1039) into view. However, a fall through the 50-day EMA ($0.0890) would give the bears a run at S1 ($0.0901) and the 100-day EMA ($0.0866). A fall through the 50-day EMA would deliver a bearish signal.
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was down 1.02% to $0.00001169. A mixed start to the day saw SHIB rise to an early high of $0.00001188 before falling to a low of $0.00001169.
SHIB needs to move through the $0.00001175 pivot to target the First Major Resistance Level (R1) at $0.00001205. A return to $0.00001200 would signal an extended bullish session. However, SHIB would need more details on the Shibarium upgrade and broader market support to deliver a breakout session.
In the event of an extended rally, SHIB could test the Second Major Resistance Level (R2) at $0.00001230 and resistance at $0.00001250. The Third Major Resistance Level (R3) sits at $0.00001285.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00001150 in play. However, barring a Fed-fueled extended sell-off, SHIB should avoid sub-$0.00001100. The Second Major Support Level (S2) at $0.00001120 should limit the downside.
The Third Major Support Level (S3) sits at $0.00001065.
The EMAs send a bullish signal, with SHIB sitting at the 50-day EMA, currently at $0.00001172. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.
A breakout from the 50-day EMA ($0.00001172) would support a move through R1 ($0.00001205) to target R2 ($0.00001230) and $0.00001250. However, a pullback from the 50-day EMA ($0.00001172) would give the bears a run at S1 ($0.00001150) and the 100-day EMA ($0.00001135). A pullback from the 50-day would send a bearish signal.