SHIB and DOGE in the Hands of Geopolitics and the US CPI Report

Key Insights:

• Dogecoin (DOGE) and shiba inu (SHIB) saw red on Wednesday, bucking the broader market trend.
• Network news updates took a back seat, with market reaction to US economic indicators and the FOMC meeting minutes testing buyer appetite.
• The technical indicators remain bearish as crypto headwinds, including the war in Ukraine, the Fed, and economic uncertainty, limit the upside.

On Wednesday, dogecoin (DOGE) fell by 0.69%. Partially reversing a 1.41% gain from Tuesday, DOGE ended the day at $0.05981.

A bullish start to the day saw DOGE rise to an early high of $0.06099. Coming up short of the First Major Resistance Level (R1) at $0.0616, DOGE slid to a late afternoon low of $0.05929. However, steering clear of the First Major Support Level (S1) at $0.05820, DOGE found late support to end the day at $0.05981.

Shiba inu coin (SHIB) fell by 0.88% on Wednesday. Reversing a 0.20% gain from Tuesday, SHIB ended the day at $0.00001016.

A bullish start to the day saw SHIB rise to a mid-morning high of $0.00001041. Falling short of the First Major Resistance Level (R1) at $0.00001054, SHIB slid to a late afternoon low of $0.00001006. However, steering clear of the First Major Support Level (S1) at $0.00000984, SHIB found late support to end the day at $0.00001016.

Support stemming from the Google announcement of a new partnership with Coinbase (COIN) to support crypto payments for cloud services failed to continue into Wednesday afternoon.

US economic indicators and the FOMC meeting minutes muted the latest adoption news. US wholesale inflation beat forecasts while coming in softer than in August. The wholesale inflation numbers, coupled with hopes of the Fed taking its foot off the gas sooner rather than later, delivered late support.

However, today’s US CPI report and updates from the G20 will remain the key focal points. Another spike in US inflation and an escalation in the war in Ukraine would be DOGE and SHIB negative. DOGE and SHIB suffered early losses today on news of another Russian missile strike.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 1.61% to $0.05884. A mixed start to the day saw DOGE fall from an early high of $0.06000 to a low of $0.05821.

DOGE fell through the First Major Support Level (S1) at $0.05910 and briefly through the Second Major Support Level (S2) at $0.05830

Technical Indicators

DOGE needs to move through S1 and the $0.0600 pivot to target the First Major Resistance Level (R1) at $0.0608 and the Wednesday high of $0.06099. However, US economic indicators and central bank chatter will have to be crypto-friendly to support a return to $0.0600.

In the case of another extended crypto market rebound, DOGE should test the Second Major Resistance Level (R2) at $0.0617. The Third Major Resistance Level (R3) sits at $0.0634.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $0.0583 in play. However, barring an extended sell-off, DOGE should avoid sub-$0.0570 and the Third Major Support Level (S3) at $0.0566.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.06113. After a bearish cross on Tuesday, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The price signals were bearish.

A move through R1 ($0.0606) would give the bulls a run at the 50-day EMA ($0.06113) and the 100-day EMA ($0.06138). However, failure to move through the 50-day EMA ($0.06145) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 1.18% to $0.00001004. A mixed start to the day saw SHIB rise to an early high of $0.00001021 before falling to a low of $0.00000987.

SHIB fell through the First Major Support Level (S1) at $0.00001001 before steadying.

Technical Indicators

SHIB needs to move through the $0.00001021 pivot to target the First Major Resistance Level (R1) at $0.00001036 and the Wednesday high of $0.00001041. Crypto-friendly FOMC chatter and US economic indicators would support a return to $0.00001030.

A broad-based crypto rally would see SHIB test the Second Major Resistance Level (R2) at $0.00001056. The Third Major Resistance Level (R3) sits at $0.00001091.

Failure to move through the pivot would bring the First Major Support Level (S1) at $0.00001001 back into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000975. The Second Major Support Level (S2) at $0.00000986 would likely limit the downside.

The Third Major Support Level (S3) sits at $0.00000951.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001073. This morning, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00001036) and R2 ($0.00001056) would give the bulls a run at the 50-day EMA ($0.00001073). However, failure to move through the 50-day EMA ($0.00001073) would leave SHIB under pressure.