SHIB and DOGE Sink as US Economic Indicators Spell More Fed Trouble

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) joined the broader crypto market in positive territory on Monday.
• However, positive US economic indicators have weighed on SHIB and DOGE early in today’s US session. The stats support Fed Chair Powell’s policy stance to curb inflation.
• Technical indicators are bearish, with EMAs pointing to further price declines.

On Monday, Dogecoin (DOGE) rose by 3.33%. Recovering from an early low of $0.06087, DOGE struck a day high of $0.06668 before ending the day at $0.06384.

Reversing a 2.96% loss on Sunday, Shiba Inu Coin (SHIB) rallied 5.67% on Monday to end the day at $0.00001248. SHIB recovered from an early low of $0.00001169 to strike a high of $0.00001255 before easing back.

A quiet US economic calendar allowed the crypto market to look beyond Fed Chair Powell’s Jackson Hole speech. The lack of stats and Fed chatter left the NASDAQ in the red, while the broader crypto market wrapped up the day in positive territory.

However, it is a different story today. US economic indicators led to a crypto reversal, with a sharp increase in consumer confidence and a jump in job openings supporting the Fed Chair’s policy mantra.

In July, JOLTs job openings stood at 11.239 million, up from 11.040 million in June. Economists forecast a decline to 10.474 million. While the headline figure was bullish, separations, and quit rates in particular, were reportedly steady. Quit rates reflect labor market conditions. Higher quit rates point to a positive view of the labor market and the economy.

Consumer confidence figures also impressed. In August, the CB Consumer Confidence Index jumped from 95.3 to 103.2 versus a forecasted 97.9. However, the survey may not have captured consumer sentiment toward Fed Chair Powell’s Jackson Hole speech.

A robust job market and the uptrend in consumer confidence give the Fed the wriggle room to tighten the policy screw.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 1.60% to $0.00001228. A bullish morning saw SHIB rise to a high of $0.00001277 before a slide to $0.00001224 in response to the US stats.

Technical Indicators

SHIB needs to avoid the $0.0000122 pivot to retarget the First Major Resistance Level (R1) at $0.0000128.

SHIB would need a material shift in risk appetite to support a breakout from the morning high of $0.00001277.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000131. The Third Major Resistance Level (R3) sits at $0.0000140.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0000119 into play. Barring another extended sell-off throughout the day, SHIB should avoid sub-$0.0000115 and the Second Major Support Level (S2) at $0.0000114.

The Third Major Support Level (S3) sits at $0.0000105.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001278. This morning, the 50-day EMA crossed through the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

A SHIB move through the 50-day EMA ($0.00001278), the 200-day EMA (0.0000128), and R1 ($0.0000128) would bring the 100-day EMA ($0.000130) and R2 ($0.0000131) into view.

However, a pullback of the 50-day EMA from the 200-day EMA would bring support levels into play.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 1.80% to $0.06269. A bullish start to the day saw DOGE rise to a high of $0.06449 before hitting reverse. DOGE fell to a low of $0.06257 as investors responded to the US economic indicators.

Technical Indicators

DOGE needs to move through the $0.0638 pivot to target the First Major Resistance Level (R1) at $0.0667 and the Monday high of $0.0667.

Sentiment across the crypto market would need to materially improve to support a breakout from the morning high of $0.06449.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0696 and resistance at $0.0700. The Third Major Resistance Level (R3) sits at $0.0754.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0609 in play. Barring an extended sell-off, DOGE should avoid the Second Major Support Level (S2) at $0.0580.

The Third Major Support Level (S3) sits at $0.0522.

The EMAs sent a bearish signal, with DOGE below the 50-day EMA, currently at $0.06582. Following last week’s bearish crosses, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, both bearish signals.

DOGE will need to move through the 50-day EMA ($0.06582) to target R1 ($0.0667) and the 100-day EMA ($0.06803).

However, a pullback from the 50-day EMA would leave the Major Support Levels in view.