SHIB Leads DOGE into the Red as Fed Chair Powell’s Speech Looms

Key Insights:

• Dogecoin (DOGE) and Shiba Inu Coin (SHIB) joined the crypto market in a Thursday recovery session.
• Fed fear took a backseat, with US economic indicators supporting the NASDAQ 100 and the broader crypto market.
• Technical indicators send mixed signals, however, with EMAs pointing to a possible DOGE sell-off.

On Thursday, Dogecoin (DOGE) rose by 1.62%. Reversing a 1.38% decline from Wednesday, DOGE ended the day at $0.06899. Shiba Inu Coin (SHIB) rallied by 6.67% to end the day at $0.00001392. The bullish session saw SHIB reverse a 1.95% loss from Wednesday,

A choppy session saw DOGE rise to a late morning high of $0.07182 before sliding to an early afternoon low of $0.06764. The morning rally saw DOGE move through the First Major Resistance Level (R1) at $0.0694 and the Second Major Resistance Level (R2) at $0.0708 before a slide back to sub-$0.069.

SHIB surged from an early low of $0.00001303 to a mid-day high of $0.00001484. The morning rally saw SHIB break through the day’s Major Resistance Levels before sliding back to sub-$0.000014. The pullback saw SHIB fall through the Third Major Resistance Level at $0.0000144.

Crypto news updates failed to distract crypto investors from the US economic calendar. Positive US stats delivered support to riskier assets, though also added to the uncertainty ahead of Fed Chair Powell’s speech later today.

In Q2, the economy contracted by 0.6% versus a previous estimate of 0.8%. Initial jobless claims slipped from 245k to 243k in the week ending August 19. The NASDAQ 100 ended Thursday up 1.67%.

At the time of writing, the NASDAQ 100 Mini is down 57.25 points, pressuring the broader crypto market.

US economic indicators will draw interest ahead of today’s heavily anticipated Fed Chair Powell speech. US personal spending and saving and inflation figures will influence.

For the crypto market, a rise in US personal spending and a spike in inflation would raise fears of a more hawkish Fed Chair outlook on monetary policy, which would be crypto negative.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 3.59% to $0.00001343.

A mixed morning saw SHIB rise to an early high of $0.00001404 before falling to a low of $0.00001320.

Technical Indicators

SHIB needs to move through the $0.0000139 pivot to target the First Major Resistance Level (R1) at $0.0000148 and the Thursday high of $0.00001484.

SHIB would need a material shift in risk appetite to support a breakout from the morning high of $0.00001404.

In the case of a broad-based crypto rally, SHIB should test the Second Major Resistance Level (R2) at $0.0000157. The Third Major Resistance Level (R3) sits at $0.0000176.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0000130 in play. Barring another extended sell-off throughout the day, SHIB should avoid sub-$0.0000125 and the Second Major Support Level (S2) at $0.0000121.

The Third Major Support Level (S3) sits at $0.0000103.

The EMAs send a bullish signal, with SHIB sitting at the 100-day EMA, currently at $0.00001344. This morning, the 50-day EMA held steady against the 100-day EMA, with the 100-day EMA also flat on the 200-day EMA, both neutral signals.

A SHIB move through the 50-day EMA ($0.00001355) would support a run R1 ($0.0000148). However, a bearish cross of the 50-day EMA through the 100-day EMA would bring S1 (0.0000130) and the 200-day EMA ($0.00001293) into view.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.27% to $0.06880.

A mixed morning saw DOGE slide to an early low of $0.06722 before rising to a high of $0.06944.

Technical Indicators

DOGE needs to move through the $0.0695 pivot to target the First Major Resistance Level (R1) at $0.0713 and the Thursday high of $0.07182.

Improved sentiment across the Crypto market would support a breakout from the morning high of $0.06944.

In an extended crypto rally, DOGE should test the Second Major Resistance Level (R2) at $0.0737. The Third Major Resistance Level (R3) sits at $0.0778. Price movement today will hinge on the US economic indicators and Fed Chair Powell’s speech.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.0671 in play. Barring an extended sell-off, the Second Major Support Level (S2) at $0.0653 should limit the downside.

The Third Major Support Level (S3) sits at $0.0611.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.07013. Following Wednesday’s bearish cross, the 50-day EMA eased back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bearish signals.

DOGE will need to move through the EMAs to break out from R1 ($0.0713) to bring R2 ($0.0737) into play.

However, a pullback from the 50-day EMA would leave the Major Support Levels in view.