DOGE and SHIB See Modest Losses Amidst Another Crypto Sell-Off

Key Insights:

  • It was a bearish session for DOGE and SHIB on Friday in what has become a choppy week.
  • The losses were modest relative to the broader crypto market.
  • Technical indicators remain bearish for SHIB, while DOGE sits at the 100-day EMA.

It was a bearish day for DOGE and SHIB on Friday.

Bearish sentiment across the broader crypto market returned after a brief respite on Thursday, weighing on DOGE and SHIB.

Reversing a 1.81% gain from Thursday, DOGE fell by 2.33% to end the day at $0.1426. SHIB reversed a 1.85% rise with a 3.99% loss to end the day at $0.00002381.

Elsewhere, LUNA tumbled by 9.5%, with SOL sliding by 7.2% to lead the broader market into the red. Bitcoin (BTC) ended the day with a 2.8% loss.

Bearish Sentiment Returns with Bitcoin (BTC) Directing the Majors

Bitcoin (BTC) and the broader crypto market followed the NASDAQ 100 into the red. Market jitters over FED monetary policy returned after Wednesday’s market rout. Bitcoin fell back to sub-$43,000 to pressure investor appetite. The NASDAQ 100 fell by 1.34% on Friday.

The FOMC meeting minutes revealed plans to reduce the FED’s bond holdings by around $95 billion each month. The balance sheet reduction plans and a likely aggressive interest rate path trajectory have spooked the markets.

A Tesla Cyber Rodeo party had delivered DOGE support before DOGE succumbed to market forces. According to reports, a drone show creating a Dogecoin in the sky created a market buzz early in the session.

DOGE Price Action

At the time of writing, DOGE was down 0.07% to $0.1425.

Near-term, a return to $0.16 is needed for DOGE to target $0.20 levels.

Technical Indicators

DOGE will need to move through the day’s $0.1455 pivot to make a run on the First Major Resistance Level at $0.1505. DOGE would need the broader crypto market to support a return to $0.15.

An extended rally would test the Second Major Resistance Level at $0.1583. The Third Major Resistance Level sits at $0.1711.

Failure to move through the pivot would test the First Major Support Level at $0.1377. Barring another extended sell-off, DOGE should steer clear of sub-$0.1350 levels. The Second Major Support Level sits at $0.1327.

A move through the pivot would support a run at $0.15 levels.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. DOGE sits at the 100-day EMA, currently at $0.1421. This morning, 50-day EMA narrowed to the 100-day EMA. The 100-day EMA pulled away from the 200-day; DOGE positive.

A move through the 50-day EMA, currently at $0.1463, would support a return to $0.15.

Holding above the 100-day EMA is key to avoiding sub-$0.14.

SHIB Price Action

At the time of writing, SHIB was up 0.59% to $0.00002395.

SHIB remains under pressure with support at $0.000023 now key.

Technical Indicators

SHIB will need to move through the day’s $0.0000242 pivot to make a run on the First Major Resistance Level at $0.0000248. SHIB would need the broader crypto market to break back to $0.0000245 levels.

An extended rally would test the Second Major Resistance Level at $0.0000258 and resistance at $0.000026. The Third Major Resistance Level sits at $0.0000275.

Failure to move through the pivot would bring the First Major Support Level at $0.0000232 into play. Barring another extended sell-off, SHIB should steer clear of sub-$0.0000230 levels. The Second Major Support Level sits at $0.0000225.

Failure to move through the pivot would leave support levels in play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB sits below the 200-day EMA at $0.0000251. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, SHIB negative.

A bearish cross of the 50-day EMA through the 100-day EMA would bring the Major Support Levels into play.

SHIB will need to move through the 200-day EMA to avoid heavier losses.