SHIB Succumbs to Profit Taking on Shibarium Upgrade Silence

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) joined the broader crypto market in a breakout Wednesday session.
• While Elon Musk delivered DOGE support, investors responded favorably to US lawmaker chatter and new SEC regulations.
• The technical indicators turned bullish, signaling further price gains.

Dogecoin (DOGE) rallied by 6.95% on Wednesday. Following a 1.71% gain on Tuesday, DOGE ended the day at $0.0893.

A bearish start to the day saw DOGE fall to an early morning low of $0.0825. Steering clear of the First Major Support Level (S1) at $0.0812, DOGE rallied to a final-hour high of $0.0896. DOGE broke through the First Major Resistance Level (R1) at $0.0848 and the Second Major Resistance Level (R2) at $0.0861 to end the day at $0.0893. The Third Major Resistance Level (R3) at $0.0897 capped the upside.

Shiba inu coin (SHIB) rallied by 7.84% on Wednesday. Following a 2.25% gain on Tuesday, SHIB ended the day at $0.00001375.

Tracking the broader market, SHIB fell to an early morning low of $0.00001254 before finding support. Steering clear of the First Major Support Level (S1) at $0.00001222, SHIB rallied to a late high of $0.00001388. SHIB broke through the First Major Resistance Level (R1) at $0.00001307 and the Second Major Resistance Level (R2) at $0.00001338 to end the day at $0.00001375.

Elon Musk and US Lawmakers Deliver a Breakout Session

It was a quiet day for SHIB, with a lack of Shibarium Network updates on the Shibarium upgrade leaving the broader market to provide direction.

However, Elon Musk continued to deliver meme coin support. On Wednesday, Elon Musk posted a Dogecoin image on Twitter, saying,

“The new CEO of Twitter is amazing.”

While making no other comments, the image could suggest that the new CEO of Twitter will be DOGE-friendly. A resumption of the integration program would support a DOGE return to $0.100.

The latest tweet followed images from the Super Bowl, where Elon Musk supported meme coins by donning a DOGE-T while chatting with Rupert Murdoch.

However, beyond the Musk tweets, updates from the Dogecoin Foundation and Shibarium Network will remain necessary for the continued upward trend.

On Wednesday, US lawmakers added to the bullish sentiment, with investors accepting the latest SEC regulations for the digital asset space.

The Day Ahead

US economic indicators, US lawmaker chatter, and the SEC will remain in focus today. Following a string of positive stats, a sharp pickup in wholesale inflationary pressure and a jump in jobless claims would test buyer appetite.

While the stats and the NASDAQ Composite Index will provide direction, SEC activity, network updates, and US lawmaker chatter will likely remain the key drivers.

Dogecoin (DOGE) Price Action

This morning, DOGE was down 1.12% to $0.0883. A mixed morning saw DOGE rise to an early high of $0.0909 before falling to a low of $0.0883.

Technical Indicators

DOGE needs to avoid a fall through the $0.0871 pivot to retarget the First Major Resistance Level (R1) at $0.0918. A move through the morning high of $0.0909 would signal another bullish afternoon. However, the broader crypto market and network updates need to be DOGE-friendly to support a breakout session.

In the event of an extended rally, the Second Major Resistance Level (R2) at $0.0942 and $0.0950 would likely come into play. The Third Major Resistance Level (R3) sits at $0.1013.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0847 into play. However, barring an SEC-fueled extended sell-off, DOGE should avoid sub-$0.0830 and the Second Major Support Level (S2) at $0.0800. The Third Major Support Level (S3) sits at $0.0729.

The EMAs sent a more bullish signal, with DOGE sitting above the 100-day EMA, currently at $0.0865. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA widening from the 200-day EMA. The price signals were bullish.

A bullish cross of the 50-day EMA through the 200-day and 100-day EMAs would support a breakout from R1 ($0.0918) to target ($0.0942) and $0.0950. However, a fall through the EMAs would bring S1 ($0.0843) and sub-$0.0830 into view. A fall through the 50-day EMA would send a bearish signal.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 1.24% to $0.00001343. A mixed morning saw SHIB rise to an early high of $0.00001399 before falling to a low of $0.0001353.

Technical Indicators

SHIB needs to avoid a fall through the $0.00001339 pivot to target the First Major Resistance Level (R1) at $0.00001424. A return to $0.00001400 would signal an extended bullish session. However, SHIB would need more details on the Shibarium upgrade and broader market support to deliver a breakout session.

In the event of an extended rally, SHIB could test the Second Major Resistance Level (R2) at $0.00001473 and resistance at $0.000015. The Third Major Resistance Level (R3) sits at $0.00001607.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00001290 into play. However, barring an extended sell-off, SHIB should avoid sub-$0.00001250 and the Second Third Major Support Level (S2) at $0.00001205.

The Third Major Support Level (S3) sits at $0.00001071.

The EMAs sent a bullish signal, with SHIB sitting above the 50-day EMA, currently at $0.00001303. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

A hold above the 50-day ($0.00001303) would support a breakout from R1 ($0.00001424) to bring R2 ($0.00001473) and $0.000015 into play. However, a fall through the 50-day EMA ($0.00001393) would bring S1 ($0.00001290) and the 100-day EMA ($0.00001285) into view. A fall through the 50-day EMA would send a bearish signal.