SHIB and DOGE in Freefall on News of Unusual Activity on Binance
- Dogecoin (DOGE) and shiba inu coin (SHIB) joined the broader market in the red on Sunday, extending losing streaks to three sessions.
- Binance news, investor jitters ahead of Tuesday’s US CPI Report, and Wednesday’s Fed interest rate decision provided a bearish weekend backdrop.
- The technical indicators are bearish, signaling further price losses.
On Sunday, dogecoin (DOGE) slid by 3.63%. Following a 0.52% decline on Saturday, DOGE ended the week down 10.94% to $0.0928. Notably, DOGE failed to revisit $0.10 for the fourth consecutive session.
A bullish start to the day saw DOGE rise to an early morning high of $0.0972. Coming up against the First Major Resistance Level (R1) at $0.0972, DOGE slid to a late low of $0.0916. DOGE fell through the day’s Major Support Levels to end the session at $0.0928.
Shiba inu coin (SHIB) fell by 0.65% on Sunday. Following a 0.54% loss on Saturday, SHIB ended the week down 2.56% to $0.00000912.
After a mixed morning, SHIB rose to an early afternoon high of $0.00000929. SHIB broke through the First Major Resistance Level (R1) at $0.00000927 before sliding to a late low of $0.00000907. SHIB fell through the First Major Support Level (S1) at $0.00000912.
However, finding support at the Second Major Support Level (S2) at $0.00000907, SHIB ended the day at $0.00000912. S1 pegged SHIB back from a full recovery.
Risk-Off Sentiment Hits Crypto Market Ahead of US CPI Report
Following a bearish weekend, DOGE and SHIB were deep into negative territory this morning. Market angst over the upcoming Fed interest rate decision tested investors over the weekend and this morning.
Following a bullish US Jobs Report and ISM Non-Manufacturing PMI survey, the focus shifts to tomorrow’s US CPI Report. Hotter-than-expected inflation numbers could slash bets of a December Fed pivot.
Friday’s US wholesale inflation figures showed that, while marginally softer, inflationary pressures are likely to linger, which could give the Fed hawks the upper hand.
Adding to the bearish mood is news of unusual activity on Binance. Binance delivered an update stating that the activity appeared normal. Nonetheless, the Binance news was enough to make investors nervous in the wake of the FTX collapse. The latest news comes at a time when trust is compromised.
Today, there are no US economic indicators to consider, leaving Tuesday’s CPI Report in focus.
Elon Musk and Twitter could reverse DOGE and SHIB losses. Following the news of Twitter planning to launch Twitter Coin, DOGE has struggled. A Twitter confirmation of DOGE’s integration onto the Twitter payment platform would provide much-needed support.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was down 4.74% to $0.0884. A bearish start to the day saw DOGE slide from an early high of $0.0931 to a low of $0.0848. DOGE fell through the First Major Support Level (S1) at $0.0905 and briefly through the Second ($0.0883) and Third ($0.0827) Major Support Levels.
DOGE needs to move through S1 and the $0.0939 pivot to target the First Major Resistance Level (R1) at $0.0961 and the Sunday high of $0.0972. A return to $0.0950 would signal a bullish afternoon session.
However, Binance news, 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 $0.0995. The Third Major Resistance Level (R3) sits at $0.1051.
Failure to move through S1 and the pivot ($0.0939) would support a fall through S2 to bring the Third Major Support Level (S3) at $0.0827 back into view.
The EMAs sent a bearish signal, with DOGE sitting below the 200-day EMA, currently at $0.0940. 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 move through S1 ($0.0905) and the 200-day EMA ($0.0940) would bring R1 ($0.0961) into play. However, failure to move through the 200-day EMA ($0.0940) would leave DOGE under intense selling pressure.
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was down 3.07% to $0.00000884. A bearish start to the day saw SHIB fall from an early high of $0.00000912 to a low of $0.00000843.
SHIB fell through the day’s Major Support Levels before a move back through the Third Major Support Level (S3) at $0.00000872.
SHIB needs to move through S2, S1, and the $0.00000916 pivot to target the First Major Resistance Level (R1) at $0.00000925 and the Sunday high of $0.00000929. A return to $0.00000920 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 $0.00000938. The Third Major Resistance Level (R3) sits at $0.00000960.
Failure to move through S2 and S1 and the pivot would leave the Third Major Support Level (S3) at $0.00000872 in play.
The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000923. This morning, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.
A move through S2, S1, and the 50-day EMA ($0.00000923) would support a breakout from R1 ($0.00000925) and the 100-day EMA ($0.00000926)) to target R2 ($0.00000938). However, failure to move through the 50-day EMA ($0.00000923) would leave SHIB under pressure.