Key Insights:
- It was a bullish Monday session, with dogecoin (DOGE) and shiba inu coin (SHIB) joining the broader crypto market in a breakout session.
- A marked shift in sentiment towards Fed monetary policy and Twitter (TWTR) news contributed to the bullish session.
- The technical indicators have turned bullish, with Fed monetary policy the driving force.
On Tuesday, dogecoin (DOGE) rallied by 6.04%. Reversing a 1.53% fall from Monday, DOGE ended the day at $0.06306. Notably, DOGE visited $0.064 for the first time since October 6.
A mixed start to the day saw DOGE fall to an early low of $0.05916. Steering clear of the First Major Support Level (S1) at $0.0585, DOGE surged to a late afternoon high of $0.06430. DOGE broke through the Major Resistance Levels before falling through the Third Major Resistance Level (R3) at $0.0642 to end the day at sub-$0.0640.
Shiba inu coin (SHIB) rose by 2.82% on Tuesday. Reversing a 2.36% loss from Monday, SHIB ended the day at $0.00001021. Notably, SHIB visited $0.00001040 levels for the first time since October 18.
After a mixed morning, SHIB fell to a mid-day low of $0.00000982. However, steering clear of the First Major Support Level (S1) at $0.00000979, SHIB rallied to a late afternoon high of $0.00001041. SHIB broke through the First Major Resistance Level (R1) at $0.00001014 and the Second Major Resistance Level (R2) at $0.00001034.
However, a bearish end to the session saw SHIB fall through R2 to end the day at $0.00001021.
There were no network updates to influence, leaving the pair in the hands of the broader crypto market. The shift in sentiment toward Fed monetary policy delivered a bullish session. Easing bets of a 75-basis point Fed rate hike in December were behind the breakout.
However, updates on the Twitter (TWTR) acquisition continue to draw interest.
This week, reports of Twitter developing a crypto wallet delivered a DOGE boost. Crypto adoption remains an important consideration for investors. Investors also expect Elon Musk to drive crypto adoption should the acquisition go ahead.
This morning, a further pickup in market risk appetite supported a bullish start to the Wednesday session.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was up 3.14% to $0.06504. A mixed start to the day saw DOGE fall to an early low of $0.06262 before rallying to a high of $0.06510.
Technical Indicators
DOGE needs to avoid the $0.0622 pivot to retarget the First Major Resistance Level (R1) at $0.0652. Twitter acquisition updates and US economic indicators will have to be crypto-friendly to support an extended bullish session.
In the case of an extended crypto market rally, DOGE should test the Second Major Resistance Level (R2) at $0.0673 and target $0.070. The Third Major Resistance Level (R3) sits at $0.0724.
A fall through the pivot would bring the First Major Support Level (S1) at $0.0600 into play. However, barring an extended crypto sell-off, DOGE should steer clear of sub-$0.0600 and the Second Major Support Level (S2) at $0.0570. The Third Major Support Level (S3) sits at $0.0519.
The EMAs sent a bullish signal, with DOGE sitting above the 200-day EMA, currently at $0.06070. The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bullish.
Avoiding the 200-day EMA ($0.06070) would give the bulls a run at R1 ($0.0652). However, a fall through the 200-day EMA ($0.0670) would bring the 50-day EMA ($0.06014) and the 100-day ($0.06013) into view.
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was up 2.06% to $0.00001042. A mixed start to the day saw SHIB fall to an early low of $0.00001019 before rising to a high of $0.00001042.
Technical Indicators
SHIB needs to avoid the $0.00001015 pivot to target the First Major Resistance Level (R1) at $0.00001047. However, SHIB would need broader market support to break out from the morning high of $0.00001042.
A broad-based crypto rally would see SHIB test the Second Major Resistance Level (R2) at $0.00001074. The Third Major Resistance Level (R3) sits at $0.00001133.
A fall through the pivot would bring the First Major Support Level (S1) at $0.00000988 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000980 and the Second Major Support Level (S2) at $0.000000956.
The Third Major Support Level (S3) sits at $0.00000897.
The EMAs send a bullish signal, with SHIB sitting above the 100-day EMA, currently at $0.00001028. This morning, the 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.
A SHIB move through R1 ($0.00001047) would give the bulls a run at the 200-day EMA ($0.00001066) and R2 ($0.00001074). However, a fall through the 100-day EMA ($0.00001028) would bring the 50-day EMA ($0.00001010) and S1 ($0.00000988) into view.
