SHIB Finds Early Support with an Eye on $0.0000130 While DOGE Fades

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) found NASDAQ support on Wednesday, with DOGE rallying by 3.55%
• Falling US Treasury yields supported the demand for riskier assets, with the markets brushing aside hawkish FOMC member chatter.
• Technical indicators are bearish, with EMAs pointing to a return to June lows before any sustainable recovery.

On Wednesday, Dogecoin (DOGE) rose by 3.55%. Partially reversing a 6.17% slide from Tuesday, DOGE ended the day at $0.06097.

A mixed session saw DOGE slide to an early low of $0.05736. Avoiding the First Major Support Level (S1) at $0.0562, DOGE rallied to a late high of $0.06153 before easing back. Despite the breakout session, DOGE came up short of the First Major Resistance Level (R1) at $0.0634.

Following a 4.98% slide on Tuesday, Shiba Inu Coin (SHIB) rose by 1.92% to end the day at $0.00001224.

Tracking the broader market, SHIB fell to an early low of $0.00001175. Avoiding the First Major Support Level (S1) at $0.0000110, SHIB rallied to a late high of $0.00001240. However, coming up short of the First Major Resistance Level (R1) at $0.0000127, SHIB eased back to end the day at sub-$0.0000123.

There were no crypto news events to support the bullish session. Investors brushed aside regulatory chatter and hawkish FOMC member speeches, with a pickup in appetite for riskier assets providing a bullish afternoon session.

For DOGE and SHIB, a lack of Elon Musk support has left the pair range-bound after the mid-August breakout and retrace. Elon Musk has taken a silent-silent approach to cryptos after getting hit with by $258 billion lawsuit. Without Musk’s vocal support, sentiment towards the Fed will need to shift to support a break free from the current ranges.

However, investors will need to hold firm, with Fed Chair Powell speaking later today. While investors were able to brush aside hawkish FOMC member chatter, Powell’s words will likely resonate.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.82% to $0.00001234.

A mixed start to the day saw SHIB fall to an early low of $0.00001222 before rising to a high of $0.00001235.

Technical Indicators

SHIB needs to avoid the $0.0000121 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 Wednesday high of $0.0000124. Later today, Fed Chair Powell will need to take a more dovish stance on interest rates to deliver a bullish session

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000128 and resistance at $0.0000130. The Third Major Resistance Level (R3) sits at $0.0000134.

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

However, a hawkish Fed Chair projecting a pickup in inflationary pressure would weigh on riskier assets. The Third Major Support Level (S3) sits at $0.0000108.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001238. This morning, the 50-day EMA eased back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA to deliver bearish signals.

A SHIB move through the 50-day EMA ($0.00001238) would support a run R1 ($0.0000125) to bring the 100-day ($0.00001257) and 200-day EMAs ($0.00001261) into view. However, the latest pullback from the 50-day EMA supports a run at the Major Support Levels.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.10% to $0.06091. A mixed start to the day saw DOGE rise to an early high of $0.06134 before falling to a low of $0.06068.

Technical Indicators

DOGE needs to avoid the $0.0600 pivot to target the First Major Resistance Level (R1) at $0.06250 and test resistance at $0.0630.

Bullish sentiment across the global financial markets would support a breakout from the Wednesday high of $0.06153. However, with Fed Chair Powell speaking later in the day, DOGE may remain under pressure ahead of Powell’s speech.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0641. The Third Major Resistance Level (R3) sits at $0.0683.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0584 into play. Barring another extended sell-off, DOGE should avoid the Second Major Support Level (S2) at $0.0558. The Third Major Support Level (S3) sits at $0.0516.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.06204. Today, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, both bearish signals.

DOGE needs to break out from the 50-day EMA ($0.06204) and R1 ($0.0625) to target the 100-day EMA ($0.06394) and R2 ($0.0641). The 200-day EMA sits at $0.06614.

However, following the latest DOGE pullback from the 50-day EMA, sub-$0.050 remains in play.