- Dogecoin (DOGE) and shiba inu coin (SHIB) enjoyed a bullish Wednesday session, with DOGE testing resistance at $0.11.
- Bets of China easing lockdown measures and Fed Chair Powell delivered a NASDAQ breakout session, which provided DOGE and SHIB price support.
- The technical indicators remain mixed, with the DOGE EMAs signaling further price gains.
On Wednesday, dogecoin (DOGE) rose by 5.13%. Following a 6.74% rally on Tuesday, DOGE ended the day at $0.1066. Notably, DOGE wrapped up the day at $0.10 for the second time since November 7.
A bullish start to the day saw DOGE rally to an early high of $0.1099. DOGE broke through the First Major Resistance Level (R1) at $0.1066 before sliding to a late afternoon low of $0.0995. However, steering clear of the First Major Support Level (S1) at $0.0949, DOGE broke back through R1 to revisit $0.1096 before easing back.
Shiba inu coin (SHIB) rose by 2.97% on Wednesday. After ending the Tuesday session flat, SHIB ended the day at $0.00000935.
Tracking DOGE, SHIB rose to an early high of $0.00000939. SHIB broke through the First Major Resistance Level (R1) at $0.00000926 before sliding back to a late afternoon low of $0.00000902. However, steering clear of the First Major Support Level (S1) at $0.00000894, SHIB broke back through R1 to revisit the day high of $0.00000939 before easing back.
Bullish sentiment spilled over from Tuesday to deliver a breakout start to the mid-week session. Hopes of the Chinese government easing lockdown measures in the wake of the countrywide protests drove crypto demand. Softer FTX contagion risk and hopes of a December Fed pivot also gave support.
Late in the day, a less hawkish Fed Chair Powell supported a second wave of buying to deliver solid gains for the session. Fed Chair Powell talked of slowing the pace of interest rate hikes, affirming market bets of a Fed pivot.
The less hawkish comments delivered a bullish session for the US equity markets, with the NASDAQ Composite Index and S&P500 seeing gains of 4.41% and 3.09%, respectively.
However, there were no updates on Twitter’s DOGE integration plans to support a return to $0.11.
Following the market reaction to Fed Chair Powell’s comments on Wednesday, US economic indicators will likely influence today. Inflation and personal spending figures will draw interest along with FOMC member chatter.
A spike in inflation and spending, together with hawkish FOMC member chatter, would test buyer demand. Investors will also need to track the news wires for Twitter updates on its crypto integration plans.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was down 1.69% to $0.1048. A mixed start to the day saw DOGE rise to an early high of $0.1079 before falling to a low of $0.1038.
DOGE needs to move through the $0.1053 pivot to target the First Major Resistance Level (R1) at $0.1112. A move through the Wednesday high of $0.1099 would signal a bullish afternoon session. However, the news wires need to be crypto-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 $0.1157 and $0.12. The Third Major Resistance Level (R3) sits at $0.1261.
Failure to move through the pivot ($0.1053) would leave the First Major Support Level (S1) at $0.1008 in play. Barring an extended sell-off, DOGE should avoid sub-$0.10 and the Second Major Support Level (S2) at $0.0949.
The Third Major Support Level (S3) sits at $0.0845.
The EMAs sent a bullish signal, with DOGE sitting above the 50-day EMA, currently at $0.0931. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The price signals were bullish.
A hold above S1 ($0.1008) and the 50-day EMA ($0.0953) would support a breakout from R1 ($0.1112) to target R2 ($0.1157) and $0.12. However, a fall through S1 ($0.1008) would give the bears a run at the 50-day EMA ($0.0953) and S2 ($0.0949).
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was down 1.39% to $0.00000922. A bearish start to the day saw SHIB fall from an early high of $0.00000937 to a low of $0.00000920.
SHIB needs to move through the $0.00000925 pivot to target the First Major Resistance Level (R1) at $0.00000949. A return to $0.00000940 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 $0.00000962. The Third Major Resistance Level (R3) sits at $0.00000999.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000912 in play. Barring an extended sell-off, SHIB should avoid sub-$0.00000890 and the Second Major Support Level (S2) at $0.00000888. The Third Major Support Level (S3) sits at $0.00000851.
The EMAs send a bearish signal, with SHIB sitting below the 100-day EMA, currently at $0.00000929. This morning, the 50-day EMA narrowed on the 100-day EMA, while the 100-day EMA flattened on the 200-day EMA. The signals were mixed.
A SHIB move through the 100-day EMA ($0.00000929) would support a run at R1 ($0.000000949) and $0.000000950. However, a fall through the 50-day EMA ($0.00000914) and S1 ($0.00000912) would bring S2 ($0.00000888) into view.