SHIB and DOGE Find Early Support but Face Uncertainty over Twitter


Key Insights:

  • Dogecoin (DOGE) and shiba inu coin (SHIB) joined the NASDAQ Composite Index in the red, with DOGE extending its losing streak to three sessions.
  • Market risk aversion stemming from fears of a global economic recession and uncertainty over Twitter integration plans weighed.
  • The technical indicators are turning bearish, signaling further downside risks.

On Wednesday, dogecoin (DOGE) slid by 4.49%. Following a 1.18% decline on Tuesday, DOGE ended the day at $0.0958. Notably, DOGE ended the day at sub-$0.10 for the first time in four sessions.

A bullish start to the day saw DOGE rise to an early morning high of $0.1012. Coming up short of the First Major Resistance Level (R1) at $0.1027, DOGE slid to a mid-morning low of $0.0929. DOGE fell through the First Major Support Level (S1) at $0.0979 and the Second Major Support Level (S2) at $0.0956.

However, finding afternoon support, DOGE broke back through S2 and S1 to end the day at $0.0958.

Shiba inu coin (SHIB) fell by 2.15% on Wednesday. Following a 1.28% loss on Tuesday, SHIB ended the day at $0.00000909.

Tracking the broader market, SHIB rose to an early morning high of $0.00000936. Coming up short of the First Major Resistance Level (R1) at $0.00000944, SHIB fell to a late morning low of $0.00000895. SHIB fell through the First Major Support Level (S1) at $0.00000917 and the Second Major Support Level (S2) at $0.00000905.

However, finding afternoon support, SHIB broke back through S2 to end the day at $0.00000909.

Risk Aversion and Twitter Uncertainty Deliver Bearish Sessions

Mid-week, riskier assets took another hit on rising fears of a global economic recession. Trade data from China painted a grim picture, with exports and imports tumbling on weak demand.

Geopolitics also tested investor sentiment, with Russian President Vladimir Putin talking about increasing nuclear risk. However, the impact was cushioned, with Putin stating that Russia would not be the first to use nuclear weapons.

US equities joined other markets in the red on Wednesday. US bank executives have also raised the prospects of a US economic recession despite a string of positive US economic indicators that have clouded the Fed monetary policy waters.

DOGE faced additional downward forces due to uncertainty over its future as a means of payment on Twitter. Elon Musk has not responded to the rumors of plans for Twitter Coin that could end hopes of a DOGE integration. The lack of commentary has left DOGE and SHIB under pressure.

Today, US economic indicators are unlikely to influence, leaving the NASDAQ and crypto news wires to influence. However, we expect updates from Elon Musk on plans for DOGE to remain the key driver.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 1.46% to $0.0972. A bullish start to the day saw DOGE rise from an early low of $0.0952 to a high of $0.0979.

DOGEUSD 081222 Daily Chart

Technical Indicators

DOGE needs to avoid the $0.0966 pivot to target the First Major Resistance Level (R1) at $0.1004 and the Wednesday high of $0.1012. A return to $0.10 would signal a bullish afternoon session. However, the NASDAQ Composite Index and Twitter updates need to be DOGE-friendly to support a breakout session.

In the event of an extended afternoon breakout session, the bulls could take a run at the Second Major Resistance Level (R2) at $0.1049. The Third Major Resistance Level (R3) sits at $0.1132.

A fall through the pivot ($0.0966) would bring the First Major Support Level (S1) at $0.0921 into play. Barring an extended sell-off, DOGE should avoid sub-$0.090 and the Second Major Support Level (S2) at $0.0883.

The Third Major Support Level (S3) sits at $0.0800.

DOGEUSD 081222 Hourly Chart

The EMAs sent a less bullish signal, with DOGE sitting above the 100-day EMA, currently at $0.0968. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bearish.

A breakout from the 100-day EMA ($0.0968) would support a run at the 50-day EMA ($0.0992) and R1 ($0.1004). However, failure to move through the 100-day EMA ($0.0968) would leave S1 ($0.0921) and sub-$0.090 in view.

DOGEUSD 081222 4 Hourly Chart

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 1.10% to $0.00000919. A bullish start to the day saw SHIB rise from an early low of $0.00000906 to a high of $0.00000924.

SHIBUSD 081222 Daily Chart

Technical Indicators

SHIB needs to avoid a fall through the $0.00000913 pivot to target the First Major Resistance Level (R1) at $0.00000932 and the Wednesday high of $0.00000936. A return to $0.00000930 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market and the NASDAQ Index.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000954. The Third Major Resistance Level (R3) sits at $0.00000995.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000891 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000980 and the Second Major Support Level (S2) at $0.00000872. The Third Major Support Level (S3) sits at $0.00000831.

SHIBUSD 081222 Hourly Chart

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000926. This morning, the 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A breakout from the 50-day ($0.00000926) and the 100-day EMA ($0.00000929) would support a move through R1 ($0.00000932) to target R2 ($0.00000954) and the 200-day EMA ($0.00000958). However, failure to move through the 50-day EMA ($0.00000926) would bring S1 ($0.00000891) into view.

SHIBUSD 081222 4 Hourly Chart



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