Team DOGE risks another huge loss as merger hopes fade

After finding support in the afternoon, DOGE broke through S2 and S1 before a second visit below $0.0700. However, S2 tied DOGE again late in the session.

Shiba inu Coin (SHIB) fell 3.18% on Wednesday. After falling 1.68% on Tuesday, Chip stock ended the day at $0.00000792. SHIB ended the day below $0.00000800 for the first time since June.

A bearish morning saw SHIB stock drop from an early morning high of $0.00000819 to a midmorning low of $0.00000779. SHIB breached the first major support level (S1) at $0.00000802 and the second major support level (S2) at $0.00000785.

However, after finding support in the afternoon, SHIB once again visited $0.00000807 before pulling back through S1 and briefly through S2.

COVID-19, the Fed, recession fears and Twitter are sending DOGE south

Investor sentiment did not improve on Wednesday and the decline from Tuesday continued into Wednesday.

Fears of a global recession, the impact of a hawkish Fed and COVID-19 updates from China have been a test of investor sentiment.

While the easing of covid-19 restrictions has been positive for the market, concerns about rising demand for commodities have raised the risk of another spike in inflation forcing central banks to take more aggressive steps to bring inflation down to target.

However, reports of an increase in COVID-19 cases in China have led governments to impose restrictions on travelers from China. Obviously, the increase in new cases also increases the risk of new variants that could lead to border restrictions and new lockdown measures.

For DOGE, the lack of Twitter updates was also bearish, with impatience over the lack of DOGE integration plans.

Today, Twitter and Elon Musk updates will continue to be the main drivers. But the silence would leave DOGE and SHIB in the hands of the broader crypto market and the NASDAQ index.

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