SHIB Targets $0.00001020 as DOGE Eyes $0.0610 on Risk Appetite

Key Insights:

• It was a bearish Monday session, with dogecoin (DOGE) and shiba inu coin (SHIB) joining the broader crypto market in negative territory.
• Network updates took a back seat, with recession fears resurfacing in response to EU and US economic indicators.
• The technical indicators remain bearish, with economic uncertainty and the war in Ukraine crypto headwinds.

On Monday, dogecoin (DOGE) fell by 1.53%. Reversing a 1.13% gain from Sunday, DOGE ended the day at $0.05947.

A bullish start to the day saw DOGE rise to an early high of $0.06094. DOGE broke through the First Major Resistance Level (R1) at $0.0607 before sliding to an early afternoon low of $0.05868. DOGE fell through the First Major Support Level (S1) at $0.0599 and the Second Major Support Level (S2) at $0.0593 before ending the day at $0.05947.

Shiba inu coin (SHIB) fell by 2.36%. Reversing a 1.60% loss from Sunday, SHIB ended the day at $0.00000993. Notably, SHIB ended the day at sub-$0.000010 for the first time in four sessions.

Tracking the broader market, SHIB rose to an early morning high of $0.00001020. Coming up short of the First Major Resistance Level (R1) at $0.00001029, SHIB slid to an early afternoon low of $0.00000985. SHIB fell through the First Major Support Level (S1) at $0.00000995 to end the day at $0.00000993.

There were no network updates to provide DOGE and SHIB with direction on Monday. The lack of network news left DOGE and SHIB in the hands of the broader crypto market.

Market reaction to Xi Jinping taking his leadership into a third term, with a government stacked with loyalists, weighed on riskier assets. Xi’s support for Vladimir Putin, China’s position on Taiwan, and its zero-tolerance policy on COVID-19 remain immediate concerns.

Private sector PMIs from the EU and the US added to the bearish sentiment. The Eurozone Composite PMI fell to a 23-month low of 47.1. Significantly, the US services PMI slid from 49.3 to a two-month low of 46.6, raising the threat of a US recession.

This morning, a pickup in market risk appetite delivered early support, with the pair eying to reverse Monday’s losses. Geopolitics and US economic indicators will remain the focal points as the markets prepare for the next wave of central bank monetary policy decisions.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 1.35% to $0.06027. A choppy morning saw DOGE slide to an early low of $0.05916 before rallying to a high of $0.06091.

DOGE briefly broke through the First Major Resistance Level (R1) at $0.0607 before easing back.

Technical Indicators

DOGE needs to avoid the $0.0597 pivot to retarget the First Major Resistance Level (R1) at $0.0607 and the morning high of $0.06091. Twitter (TWTR) acquisition updates and US economic indicators will have to be crypto-friendly to support a bullish session.

In the case of an extended crypto market rally, DOGE should test the Second Major Resistance Level (R2) at $0.0620. The Third Major Resistance Level (R3) sits at $0.0642.

A fall through the pivot would bring the First Major Support Level (S1) at $0.0585 into play. However, barring an extended crypto sell-off, DOGE should steer clear of sub-$0.0580 and the Second Major Support Level (S2) at $0.0574. The Third Major Support Level (S3) sits at $0.0552.

The EMAs sent a bearish signal, with DOGE sitting below the 200-day EMA, currently at $0.06061. The 50-day EMA closed in on the 100-day EMA, while the 100-day EMA flattened on the 200-day EMA. The price signals were mixed.

Avoiding the 100-day EMA ($0.05988) would give the bulls a run at the 200-day EMA ($0.06061) and R1 ($0.0607). However, a fall through the 100-day EMA ($0.05988) and the 50-day EMA ($0.05958) would give the bears a run at S1 ($0.0585).

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.91% to $0.00001002. A choppy start to the day saw SHIB fall to an early low of $0.00000988 before rising to a high of $0.00001003.

Technical Indicators

SHIB needs to avoid the $0.00000999 pivot to target the First Major Resistance Level (R1) at $0.00001014 and the Monday high of $0.00001020. However, SHIB would need broader market support to break out from $0.00001010.

A broad-based crypto rally would see SHIB test the Second Major Resistance Level (R2) at $0.00001034. The Third Major Resistance Level (R3) sits at $0.00001069.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000979 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000975 and the Second Major Support Level (S2) at $0.000000964.

The Third Major Support Level (S3) sits at $0.00000929.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00001008. This morning, the 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A SHIB move through the 50-day EMA ($0.00001008) would support a run at R1 ($0.00001014) and the Monday high of $0.00001020. The 200-day EMA sits at $0.00001068. However, failure to move through the 50-day EMA ($0.00001008) would leave S1 ($0.00000979) in view.