DOGE Faces the Risk of Sub-$0.058, with SHIB Giving Up Early Gains

Key Insights:

• It was a bullish Thursday session, with dogecoin (DOGE) and shiba inu coin (SHIB) bucking the broader crypto market trend.
• Tesla’s (TSLA) earnings call delivered price support despite a 6.65% falling share price in response to the quarterly earnings miss.
• The technical indicators remain bearish, with Fed Fear continuing to suggest further near-term losses.

On Thursday, dogecoin (DOGE) rose by 1.25%. Partially reversing a 1.81% fall from Wednesday, DOGE ended the day at $0.05942.

A bearish start to the day saw DOGE fall to an early low of $0.05822. Steering clear of the First Major Support Level (S1) at $0.0577, DOGE rallied to a late high of $0.06037. DOGE broke through the First Major Resistance Level (R1) at $0.0602 before a return to sub-$0.0600.

Shiba inu coin (SHIB) rose by 0.51% on Thursday. Partially reversing a 3.05% slide from Wednesday, SHIB ended the day at $0.00000991. Notably, SHIB ended the day at sub-$0.000010 for the second time since July 12.

Tracking the broader market, SHIB fell to an early low of $0.00000979. Steering clear of the First Major Support Level (S1) at $0.00000947, SHIB rose to an early afternoon high of $0.00001013. However, coming up short of the First Major Resistance Level (R1) at $0.00001021, SHIB fell back to sub-$0.000010.

Meme coins were at the mercy of the Tesla (TSLA) earnings results this week. While Tesla missed estimates, the numbers still upbeat, delivering DOGE and SHIB price support.

YoY, revenue increased by 56% to $21.45 billion versus analyst estimates of $21.96 billion. However, Tesla beat the earnings estimate of $1.01 with an EPS of $1.05. Elon Musk delivered an optimistic outlook, which may have failed to support the share price but limited the damage in a challenging macroeconomic environment.

On Thursday, Tesla fell by 6.65% to end the day at $207.28.

Following the earnings result, the market focus will return to the Twitter (TWTR) acquisition. Progress toward a buyout should provide DOGE and SHIB price support. During the Tesla earnings call, Musk reportedly said,

“Although, obviously, myself and other investors are obviously overpaying for Twitter right now, the long-term potential for Twitter, in my view, is an order of magnitude greater than its current value.”

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.80% to $0.05895. A mixed start to the day saw DOGE rise to an early high of $0.05951 before falling to a low of $0.05871.

Technical Indicators

DOGE needs to move through the $0.0593 pivot to target the First Major Resistance Level (R1) at $0.0605. Progress toward the acquisition of Twitter and a shift in investor sentiment would support a breakout session.

In the case of an extended crypto market rally, DOGE should test the Second Major Resistance Level (R2) at $0.0615 and resistance at $0.0620. The Third Major Resistance Level (R3) sits at $0.0636.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0583 in play. However, barring an extended crypto sell-off, DOGE should steer clear of sub-$0.0575 and the Second Major Support Level (S2) at $0.0572. Third Major Support Level (S3) at $0.0550.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.05961. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The price signals were bearish.

A move through the 50-day EMA ($0.05961) would give the bulls a run at the 100-day EMA ($0.06009) and R1 ($0.0605). However, failure to move through the 50-day EMA ($0.05961) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.40% to $0.00000995. A choppy start to the day saw SHIB slide to an early low of $0.00000976 before rising to a high of $0.00001004.

The First Major Support Level (S1) at $0.00000976 delivered early support.

Technical Indicators

SHIB needs to avoid the $0.00000994 pivot to target the First Major Resistance Level (R1) at $0.00001010 and the Thursday high of $0.00001013. However, SHIB would need broader market support to break out from the morning high of $0.00001004.

A broad-based crypto rally would see SHIB test the Second Major Resistance Level (R2) at $0.00001028 and resistance at $0.00001030. The Third Major Resistance Level (R3) sits at $0.00001062.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000976 back into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000970 and the Second Major Support Level (S2) at $0.000000960.

The Third Major Support Level (S3) sits at $0.00000926.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001022. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA sliding back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00001010) and the 50-day EMA ($0.00001022) would support a run at $0.00001028. However, failure to move through the 50-day EMA ($0.00001022) would leave S1 ($0.00000976) in view.