DOGE and SHIB See Meme Coin Advance Derailed as Fed Fear Rises

Key Insights:

• After a mixed Sunday session, Dogecoin (DOGE) and Shiba Inu Coin (SHIB) are back in the deep red today.
• Bearish sentiment swept across the global financial markets, with Fed fear hitting riskier assets.
• Technical indicators are starting to flash red and pointing to further near-term losses.

On Sunday, Dogecoin (DOGE) slipped by 0.05%. Following a 2.30% gain from Saturday, DOGE ended the week down 15.2%. For the week, Shiba Inu Coin (SHIB) joined DOGE in the deep red, sliding by 20.3%, the heavier loss coming despite a 4.74% Sunday rally.

DOGE struck a new August high of $0.0898 on Tuesday before succumbing to crypto market forces. SHIB hit an August 14 current month high of $0.00001792 before the crypto meltdown.

The sell-off came despite the increased popularity of DOGE and SHIB. Market angst over Fed monetary policy left DOGE, SHIB, and the broader crypto market in the deep red. Market conditions deteriorated through today’s morning session, with the NASDAQ 100 Mini flashing red ahead of the US opening bell.

This morning, the NASDAQ 100 Mini was down 207 points.

DOGE and SHIB Are Set for a Choppy Week with Fed Fears Mounting

While it is a quiet day on the US economic calendar, the stats are on the busier side this week. Service sector PMI numbers for August will draw plenty of interest on Tuesday. Q2 GDP and jobless claims figures will also influence sentiment on Thursday, ahead of inflation and personal spending data (Fri).

Alongside the stats in the second half of the week, the Jackson Hole Symposium will have a material impact on market risk sentiment. Upbeat stats in the week could force the Fed to deliver more hawkish guidance on interest rates that could fuel another sell-off.

Barring a crypto market event or an Elon Musk tweet, DOGE and SHIB will likely remain in the hands of crypto market sentiment this week.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 3.49% to $0.00001301.

A mixed morning saw SHIB strike an early high of $0.00001353 before sliding to a low of $0.00001275.

SHIB briefly fell through the First Major Support Level (S1) at $0.0000129.

Technical Indicators

SHIB needs to move through the $0.0000134 pivot to target the First Major Resistance Level (R1) at $0.0000139.

SHIB would need a material shift in risk appetite to support a breakout from the Sunday high of $0.00001378.

In the case of a broad-based crypto rebound, SHIB should test the Second Major Resistance Level (R2) at $0.0000143. The Third Major Resistance Level (R3) sits at $0.0000153.

Failure to move through the pivot would bring the First Major Support Level (S1) at $0.0000129 back into play. Barring another extended sell-off throughout the day, SHIB should avoid sub-$0.0000120. The Second Major Support Level (S2) at $0.0000124 should limit the downside.

The Third Major Support Level (S3) sits at $0.0000114.

The EMAs send a bearish signal, with SHIB sitting below the 100-day EMA, currently at $0.00001344. A SHIB move through the 100-day EMA would support a run at the 50-day EMA ($0.00001370) and R1 ($0.0000139).

However, failure to move through the 100-day EMA would bring S1 ($0.0000129) and the 200-day EMA ($0.00001280) back into view.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 3.80% to $0.06667.

Tracking the broader market, DOGE rose to an early high of $0.06941 before falling to a low of $0.06520.

DOGE fell through the First Major Support Level (S1) at $0.0675 and briefly through the Second Major Support Level (S2) at $0.0658.

Technical Indicators

DOGE needs to move through S1 ($0.0675) and the $0.0692 pivot to test the First Major Resistance Level (R1) at $0.0709.

DOGE would need market risk sentiment to improve to support a breakout from the Sunday high of $0.07077.

In the event of an extended crypto rebound, DOGE should test the Second Major Resistance Level (R2) at $0.0725. The Third Major Resistance Level (R3) sits at $0.0759.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $0.0675 in play. Barring another extended sell-off throughout the day, DOGE should avoid sub-$0.0650. The Second Major Support Level (S2) at $0.0658 should limit the downside.

The Third Major Support Level (S3) sits at $0.0624.

The EMAs sent a bearish signal, with DOGE below the 200-day EMA, currently at $0.07129. This morning, the 50-day EMA crossed through the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

A move through S1 ($0.0675) and a breakout from R1 ($0.0709) would bring the 200-day EMA ($0.07129) into play.

However, a slide back from the 200-day EMA would bring S2 ($0.0658) back into view.