SHIB Eyes $0.000013 Though any Breakout Will be US Data Dependent

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) found late support to kick off September on a positive footing.
• US economic indicators beat forecasts to send the crypto market into the red before finding support from a late NASDAQ 100 recovery.
• Technical indicators remain bearish, with EMAs pointing to further price declines.

On Thursday, Dogecoin (DOGE) rose by 1.66%. Reversing a 0.30% loss from Wednesday, DOGE ended the day at $0.06237. DOGE fell through the First Major Support Level (S1) at $0.0602 to a mid-afternoon low of $0.05987 before finding late support. The late rebound saw DOGE strike a high of $0.06263 before easing back.

Reversing a 0.82% loss from Wednesday, Shiba Inu Coin (SHIB) rose by 1.40% to end the day at $0.00001227. Responding to US economic indicators, SHIB slid to a day low of $0.00001187. Finding support at the First Major Support Level (S1) at $0.000019, SHIB rallied to a high of $0.00001245 before easing back. The First Major Resistance Level at $0.0000125 capped the upside.

US economic indicators weighed on DOGE, SHIB, and the broader crypto market. In August, the ISM Manufacturing PMI held steady at 52.8. Economists forecast a decline to 52.0. Significantly, the employment sub-component jumped from 49.9 to 54.2.

Earlier in the session, initial jobless claims fell from 237k to 232k, with the 4-week average down from 245.5k to 241.5k. Thursday’s data set suggests that the Fed’s rate hikes and forward guidance had a muted impact on hiring.

Today, the focus will shift to US nonfarm payrolls and wage growth figures for August. Being the official labor market numbers, another spike in hiring could force the Fed to take a more aggressive path to normalization.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.08% to $0.00001228.

Technical Indicators

SHIB needs to avoid the $0.0000122 pivot to target the First Major Resistance Level (R1) at $0.0000125.

SHIB would need a pickup in market risk appetite to support a breakout from the Thursday high of $0.00001245. Market angst ahead of today’s US labor market economic indicators could test investor resilience.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000128. The Third Major Resistance Level (R3) sits at $0.0000134. Weak NFP and wage growth figures would support a breakout through the US session.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0000119 into play. Barring an NFP-fueled extended sell-off, SHIB should avoid sub-$0.0000115. The Second Major Support Level (S2) at $0.0000116 should limit the downside.

The Third Major Support Level (S3) sits at $0.0000110.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001252. This morning, the 50-day EMA fell back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

A SHIB move through R1 ($0.0000125) and the 50-day EMA ($0.00001252) would bring the 200-day EMA (0.00001272) and the 100-day EMA ($0.00001280) into view.

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

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.35% to $0.06215.

Technical Indicators

DOGE needs to avoid the $0.0616 pivot to target the First Major Resistance Level (R1) at $0.0634.

Bullish sentiment across the global financial markets would support a breakout from the Thursday high of $0.06263.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0644. The Third Major Resistance Level (R3) sits at $0.0671.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0606 into play. Investor uncertainty ahead of today’s US labor market stats could test support for riskier assets. Barring an extended sell-off, DOGE should avoid the Second Major Support Level (S2) at $0.0589.

The Third Major Support Level (S3) sits at $0.0561.

The EMAs sent a bearish signal, with DOGE below the 50-day EMA, currently at $0.06398. Following last week’s bearish crosses, the 50-day EMA fell 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 R1 ($0.0634) and the 50-day EMA ($0.06398) to target R2 ($0.0644) and the 100-day EMA ($0.06640).

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