DOGE’s Top Ten Visit May Be Short-Lived with EMAs Suggesting sub-$0.050

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) joined the broader market in the deep red on Tuesday, with DOGE sliding by 6.17%.
• A bearish US session and US economic indicators sent the pair into the red.
• Technical indicators remain bearish, with EMAs pointing to further downside before any shift in direction.

On Tuesday, Dogecoin (DOGE) slid by 6.17%. Following a 0.77% decline on Monday, DOGE ended the day at $0.05888.

A mixed session saw DOGE strike an early high of $0.06530 before sliding to a late low of $0.05802. DOGE fell through the First Major Support Level (S1) at $0.0612 and the Second Major Support Level (S2) at $0.0596 to end the day at sub-$0.059.

Following a 1.63% decline on Monday, Shiba Inu Coin (SHIB) fell by 4.98% to end the day at $0.00001201.

Tracking the broader market, SHIB rose to an early high of $0.00001293 before sliding to a late low of $0.00001171. SHIB fell through the First Major Support Level (S1) at $0.0000123 and the Second Major Support Level (S2) at $0.0000119 before a partial recovery to $0.00001201.

There were no crypto events for a second consecutive session to provide DOGE and SHIG with direction. SHIB burn rates and sentiment towards the SHIB entry into the metaverse failed to deliver price support as US investors returned and US economic indicators weighed on crypto market appetite.

Better-than-expected ISM Non-Manufacturing PMI numbers tested support for riskier assets.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.58% to $0.00001208.

A choppy morning saw SHIB fall to an early low of $0.00001191 before rising to a high of $0.00001210.

Technical Indicators

SHIB needs to move through the $0.0000122 pivot to target the First Major Resistance Level (R1) at $0.0000127 and the Tuesday high of $0.00001293.

SHIB would need a pickup in market risk appetite to support a breakout from $0.0000125. Later today, FOMC member chatter will influence, with dovish comments supportive of a bullish session.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000134 and resistance at $0.0000135. The Third Major Resistance Level (R3) sits at $0.0000147.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0000115 in play. Barring an extended sell-off, SHIB should avoid sub-$0.0000110. The Second Major Support Level (S2) at $0.0000110 should limit the downside.

Hawkish FOMC member commentary aligned with recent comments would test investor resilience. The Third Major Support Level (S3) sits at $0.0000098.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001244. This morning, the 50-day EMA slid back from the 200-day EMA, with the 100-day EMA crossing through the 200-day EMA to deliver bearish signals.

A SHIB move through the 50-day EMA would support a run at the 100-day (0.00001262) and 200-day EMAs ($0.00001263) to bring R1 ($0.0000127) into view. However, the Tuesday 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 0.29% to $0.05870. A mixed start to the day saw DOGE rise to an early high of $0.05902 before falling to a low of $0.05805.

Technical Indicators

DOGE needs to move through the $0.0607 pivot to target the First Major Resistance Level (R1) at $0.06340 and resistance at $0.0650.

Bullish sentiment across the global financial markets would support a return to $0.060 and run at R1. FOMC member chatter would need to be dovish for a breakout session.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0680. The Third Major Resistance Level (R3) sits at $0.0753.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0562 in play. Barring another extended sell-off, DOGE should avoid sub-$0.0550 and the Second Major Support Level (S2) at $0.0534. Hawkish FOMC member chatter would support another sell-off. The Third Major Support Level (S3) sits at $0.0462.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.06256. 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 ($0.06256) to target R1 ($0.0634) and the 100-day EMA ($0.06442). The 200-day EMA sits at $0.06651.

However, Tuesday’s pullback from the 50-day EMA gives the bulls a near-term look at sub-$0.050.