January 2023, The Distributed, Stanko Illiev and Md Ishtiaque Ahmed
January has been a positive month for the cryptocurrency market so far, Bitcoin is trading above $23,000, and this situation also positively influences Dogecoin (DOGE) and Shiba Inu (SHIB). Dogecoin (DOGE) jumped again above $0,09 on January 28, 2023, and despite the current correction, bulls still control the price movement.
It is essential to mention that Tesla, Space X, and Twitter CEO Elon Musk urged again last week McDonald’s to accept DOGE as a payment method. Elon Musk said he will still advertise McDonald’s food on U.S. TV if the company begins accepting Dogecoin.
Shiba (INU) is also advancing at the start of 2023, and the price of this cryptocurrency has increased more than 30% since the beginning of January 2023. In the last six days, SHIB has gained around 10% of its value, but it is unclear whether bulls will find enough funding to push the price above the critical resistance level at $0.000015.
The explosive rally in the cryptocurrency market is connected with the positive sentiment in the stock markets. While sentiment-based indicators show that investors are no longer in panic, a recommendation is that you should continue to take a defensive investment approach early in February 2023. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said:
“There was a lot of volatility in markets last week, but ultimately investors are looking ahead to next week when the Federal Reserve is going to meet. A less-hawkish Fed is normally bullish for risk assets, while an economic downturn is bearish. “
The next Federal Reserve meeting is scheduled for February 01, and it is still unsure if it will take a less aggressive stance in its interest rate hikes. Expectations are that Fed policymakers will raise interest rates by 25 basis points. However, the main question remains how much time will the Fed need to hold policy at a restrictive level to control inflation?
See Related: Bitcoin And Ethereum Technical Analysis For February 2023
Technical Analysis Of Dogecoin (DOGE)
Key Findings: DOGE Technical Analysis
- Dogecoin will likely retest the immediate resistance near $0.0950 following the current bullish trend.
- The price strongly rejected the support at $0.0712 before initiating the bullish move.
- The 100 EMA is still moving below the 200 EMA, suggesting no long-term uptrend confirmation yet.
- MACD indicates the DOGE price is still holding on to the bullish sentiment.
- Dogecoin may retest $0.1100 if it can break the resistance at $0.0950.
Dogecoin has been under an overall bullish trend since the price rejected the support at $0.0712. However, the daily chart printed several bearish hammers right below the long-term resistance at $0.0950, which may bring back the recent bearish sentiment and push the price back to immediate support.
Interestingly, the price has already exceeded the 100 and 200-day EMA, and these levels are expected to react as dynamic support if we see a bearish trend reversal. Although, the 100 EMA is yet to move above the 200 EMA to confirm an extension of the current bullish rally.
The MACD bars are still closing above zero, indicating bullish sentiment. Additionally, the MACD line holding above the signal line suggests an uptrend market.
Technically, Dogecoin must exceed the immediate resistance at $0.950 to keep marching toward the next resistance at $0.1100. Alternatively, the price may pull back near the current support at $0.0712 before deciding on the upcoming market bias.
Technical Analysis Of Shiba Inu (SHIB)
Key Findings: SHIB Technical Analysis
- Shiba Inu gained above 30% throughout January 2023.
- The price is above 10 MA, indicating a bullish market bias.
- The meme-coin has the potential to hit the next resistance at $0.000015 following the current bullish momentum.
- If the price exceeds the current resistance, the next upside target for SHIB will be $0.000020.
- A failure to exceed $0.000015 may force the price to move below the 10 MA and return to the current support at $0.000010.
SHIBUSD may retest the upcoming resistance at $0.000015. Source: The Distributed.
Shiba Inu (SHIB) has advanced from $0.0000080 to $0.00001295 since the beginning of January 2023, and the current price stands at $0.00001200. The price stays above the 10-day moving average, indicating that this cryptocurrency could advance even more in the upcoming days.
The important resistance level for SHIB stands at $0.000015, and if the price advances above this level, the next target could be resistance at $0.000020.
Traders should also consider that the price of SHIB is usually correlated with Bitcoin, and if the price of Bitcoin jumps above $25,000, we would see SHIB at a higher price level than the current price. The strong support level is $0.000010; if the price breaks this level, we could see SHIB at $0.0000090 or even below.
