DOGE and SHIB Slump Alongside the Broader Crypto Market

Key Insights:

• It was a bearish session for DOGE and SHIB, which succumbed to crypto market forces.
• Elon Musk hit DOGE early in the day, with news of Musk not joining the Twitter board weighing.
• Technical indicators for DOGE and SHIB are bearish, with SHIB below the 50-day EMA and DOGE below the 200-day EMA.

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

Elon Musk sank DOGE early, with bearish sentiment crypto market weighing on DOGE and SHIB throughout the day.

Reversing a 2.77% gain from Sunday, DOGE slumped by 9.45% to end the day at $0.1342. SHIB followed a 0.65% fall with a 9.32% tumble to end the day at $0.00002218.

Things were not much better elsewhere

ADA (-10.33%), LUNA (-10.10%), and SOL (-10.24%) led the way down, with AVAX and XRP sliding by 8.55% and 7.92%, respectively.

BNB (-5.58%) and ETH (-6.98%) also saw heavy losses.

The bearish sentiment left Bitcoin (BTC) down by 6.19% to sub-$40,000 levels for the first time since March 27.

Elon Musk Sinks Dogecoin on News of Not Joining Twitter Board

Following the market euphoria of Musk reportedly joining the Twitter board over the weekend, the news was DOGE negative on Monday.

On Monday, news hit the wires of Musk refusing to join the Twitter Board. DOGE reportedly slumped by 7.4% in response.

Adding to the market angst was a jump in 10-year U.S Treasury yields to their highest level since 2019. Inflation woes hit riskier assets, with fears of a more aggressive FED rate path impacting market risk sentiment.

DOGE Price Action

At the time of writing, DOGE was up 0.75% to $0.1352.

Technical Indicators

DOGE will need to move through the day’s $0.1395 pivot to make a run on the First Major Resistance Level at $0.1460. DOGE would need the broader crypto market to support a return to $0.1400.

An extended rally would test the Second Major Resistance Level at $0.1578 and resistance at $0.16. The Third Major Resistance Level sits at $0.1761.

Failure to move through the pivot would test the First Major Support Level at $0.1277. Barring another extended sell-off, DOGE should steer clear of sub-$0.1250 levels. The Second Major Support Level sits at $0.1212.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE sits below the 200-day EMA at $0.1385. This morning, 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, a bearish signal.

A bearish cross of the 50-day EMA through the 100-day EMA would bring sub-$0.1350 into play.

SHIB Price Action

At the time of writing, SHIB was up 0.95% to $0.00002239.

Technical Indicators

SHIB will need to move through the day’s $0.0000229 pivot to make a run on the First Major Resistance Level at $0.0000239. SHIB would need the broader crypto market to move back to $0.0000235 levels.

An extended rally would test the Second Major Resistance Level at $0.0000257 and resistance at $0.000026. The Third Major Resistance Level sits at $0.0000285.

Failure to move through the pivot would bring the First Major Support Level at $0.0000211 into play. Barring another extended sell-off, SHIB should steer clear of sub-$0.0000200 levels. The Second Major Support Level at $0.0000201 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB sits below the 50-day EMA at $0.0000246. This morning, the 50-day EMA pulled back from the 200-day. The 100-day EMA converged on the 200-day EMA, SHIB negative.

A bearish cross of the 100-day EMA through the 200-day EMA would bring the Major Support Levels into play.