DOGE Eyes a Return to $0.090 after a DOGE and SHIB Reversal

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) joined the broader crypto market in the deep red on Wednesday.
• The meme coin rally hit pause, with US economic indicators and the FOMC meeting minutes weighing on riskier assets.
• Despite the bearish session, the technical indicators are bullish, supporting Dogecoin’s (DOGE) number ten ranking and SHIB’s move towards the number 11 spot.

On Wednesday, Dogecoin (DOGE) slid by 7.55%. Partially reversing a 13.32% rally from Tuesday, DOGE ended the day at $0.08026. Shiba Inu Coin (SHIB) also saw deep red, falling by 6.51% to $0.00001478. On Tuesday, SHIB gained 3.60%.

A choppy Wednesday session saw DOGE rally to an early high of $0.0890. Coming up short of the First Major Resistance Level (R1) at $0.0923, DOGE slid to a late low of $0.0793.

Coming within range of the First Major Support Level (S1) at $0.0787, DOGE found support to return to $0.080.

SHIB struck an early high of $0.00001642 before sliding to a low of $0.0000145. SHIB fell through the First Major Support Level (S1) at $0.0000151 to test the Second Major Support Level (S2) at $0.0000144 before a partial recovery to $0.00001475.

DOGE and SHIB Succumb to Market Forces Despite Meme Coin Demand

There were crypto news updates to send DOGE and SHIB into the red, leaving economic indicators and sentiment towards Fed monetary policy to provide direction.

Bearish sentiment gripped the crypto market going into the European session, with US retail sales figures providing little comfort later in the day. In July, retail sales were flat, while core retail sales increased by 0.4%.

Late in the US session, the heavily anticipated FOMC meeting minutes also delivered plenty of direction. While market participants considered the minutes less dovish, the minutes suggested an aggressive interest rate trajectory to bring inflation to target.

The European and the US equity markets saw red on Wednesday, adding downward pressure on the crypto market. The NASDAQ 100 fell by 1.25%, with the DAX down 2.04%.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.61% to $0.0001487.

Technical Indicators

SHIB needs to move through the $0.0000152 pivot to target the First Major Resistance Level (R1) at $0.0000160 and the Wednesday high of $0.00001642.

SHIB would need a bullish start to the session for the broader crypto market to support a return to $0.0000155.

In the event of an extended rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000172 and resistance at $0.0000180. The Third Major Resistance Level (R3) sits at $0.0000191.

Failure to move through the pivot would bring the First Major Support Level (S1) at $0.0000140 into play. Barring another extended sell-off throughout the day, SHIB should avoid sub-$0.0000135 and the Second Major Support Level (S2) at $0.0000133.

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

The EMAs send a bullish signal, with SHIB sitting above the 50-day EMA, currently at $0.0000144. Avoiding a fall through the 50-day EMA would support a run at R1 ($0.0000160). However, a fall through the 50-day EMA would bring S1 ($0.0000140) and the 100-day EMA ($0.00001350) into view.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 0.30% to $0.08047.

Technical Indicators

DOGE needs to move through the $0.0829 pivot to test the First Major Resistance Level (R1) at $0.0864 and the Wednesday high of $0.0890.

DOGE would need a bullish start to the week for the broader crypto market to support a return to $0.0850.

In the event of an extended rally, DOGE should test the Second Major Resistance Level (R2) at $0.0925 and resistance at $0.0950. The Third Major Resistance Level (R3) sits at $0.1022.

Failure to move through the pivot would leave the First Major Support Level at $0.0767 in play. Barring another extended sell-off throughout the day, DOGE should avoid sub-$0.0750 and the Second Major Support Level at $0.0732.

The Third Major Resistance Level sits at $0.0635.

The EMAs sent a bullish signal, with DOGE sitting above the 50-day EMA, currently at $0.0773. Avoiding a fall through the 50-day EMA would support a bullish session and a look at $0.090 levels.

However, a fall through the 50-day EMA ($0.0773) and S1 ($0.0767) would bring the 100-day EMA ($0.0740) and S2 ($0.0732) into view.