DOGE to Target $0.0820 on Network News and US Inflation

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) had a mixed mid-week session, with SHIB seeing a five-day winning streak end.
• Risk-on sentiment supported a late DOGE recovery, while SHIB ended the day in the red as investors locked in profits from the bullish start to the year.
• However, the technical indicators are bullish, signaling further price gains.

Dogecoin (DOGE) rose by 0.26% on Wednesday. Following a 2.64% gain on Tuesday, DOGE ended the day at $0.0780.

After a choppy morning, DOGE fell to a mid-afternoon low of $0.0746. DOGE fell through the First Major Support Level (S1) at $0.0751 before striking a final-hour high of $0.0786. However, coming up short of the First Major Resistance Level (R1) at $0.0793, DOGE eased back to end the day at $0.0780.

Shiba inu coin (SHIB) fell by 1.51% on Wednesday. Partially reversing a 6.56% rally from Tuesday, SHIB ended the day at $0.00000912. SHIB wrapped up the day at $0.0000090 for the second time since December 13 while ending a five-day winning streak.

After a bearish morning, SHIB fell to a mid-afternoon low of $0.00000865. Finding support at the First Major Support Level (S1) at $0.00000864, SHIB rose to a late high of $0.00000927. However, falling short of the First Major Resistance Level (R1) at $0.00000977, SHIB slipped back into the red.

SHIB Investors Lock in Profits Ahead of the Shibarium Upgrade

There were no further updates from the Shibarium Network on Wednesday to deliver a six-day winning streak. Profit-taking led to just the second loss of the year.

However, indicators remain bullish, with the Shibarium upgrade likely to push SHIB northwards. While improving transaction speeds and lower fees are a plus, post-Shibarium SHIB burn rates will provide price support.

DOGE tracked the broader crypto market, fueled by hopes of softer US inflation, which drove demand for riskier assets. DOGE had also succumbed to profit-taking before a final-hour rebound. There were no network updates following the launch of the Dogecoin Foundation’s development fund to provide direction.

Today, market sentiment toward the respective networks will continue to provide direction, with technical indicators also flashing bullish signals. However, the US economic calendar will also influence buyer appetite. The US CPI Report and the weekly jobless claims are in focus.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 0.64% to $0.0785. A mixed start to the day saw DOGE fall to an early low of $0.0776 before rising to a high of $0.0796. The First Major Resistance Level (R1) at $0.0795 capped the upside.

Technical Indicators

DOGE needs to avoid a fall through the $0.0771 pivot to retarget the First Major Resistance Level (R1) at $0.0795 and $0.0800. A return to $0.0786 would signal a bullish Thursday session. However, the US economic indicators and network 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 $ $0.0811. The Third Major Resistance Level (R3) sits at $0.0851.

A fall through the pivot ($0.0771) would bring the First Major Support Level (S1) at $0.0755 into play. However, barring an extended sell-off, DOGE should avoid sub-$0.0750 and the Second Major Support Level (S2) at $0.0731. The Third Major Support Level (S3) sits at $0.0691.

The EMAs sent a bullish signal, with DOGE sitting above the 200-day EMA, currently at $0.0775. This morning, the 50-day EMA converged on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bullish.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from R1 ($0.0795) to target ($0.0811). However, a fall through S1 ($0.0755) would give the bears a run at the 50-day EMA ($0.0746). A fall through the 50-day EMA would signal a shift in sentiment.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 2.52% to $0.00000935. A mixed start to the day saw SHIB fall to an early low of $0.00000907 before rising to a high of $0.00000969. SHIB briefly broke through the First Major Resistance Level (R1) at $0.00000938 and the Second Major Resistance Level (R2) at $0.00000963.

Technical Indicators

SHIB needs to avoid the $0.00000901 pivot to break out from the First Major Resistance Level (R1) at $0.00000938 and retarget the Second Major Resistance Level (R2) at $0.00000963. A return to $0.00000960 would signal a breakout session. However, SHIB will likely take its cues from the broader crypto market and further updates on the Shibarium upgrade.

In the case of an extended rally, SHIB would likely test the Third Major Resistance Level (R3) at $0.00001025.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000876 into play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000870 and the Second Major Support Level (S2) at $0.00000839.

The Third Major Support Level (S3) sits at $0.00000777.

The EMAs send a bullish signal, with SHIB sitting above the 50-day EMA, currently at $0.00000870. After the Tuesday bullish cross, the 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A hold above S1 ($0.00000876) and the 50-day EMA ($0.00000870) would support another breakout from R1 ($0.00000938) to retarget R2 ($0.00000963). However, a fall through S1 ($0.00000876) and the 50-day ($0.00000870) would signal a shift in sentiment.