DOGE Bears Target a Return to Sub-$0.0700 on FTX Contagion

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) joined the broader crypto market in the red on Sunday.
• FTX contagion sent the crypto market into the red, with the latest news overshadowing network updates.
• The technical indicators remain bearish, with the EMAs signaling further downside.

On Sunday, dogecoin (DOGE) slid by 9.10%. After ending the day flat on Saturday, DOGE ended the week down 9.32% to $0.0769. Notably, DOGE ended the day at sub-$0.0800 for the first time since November 9.

A bullish start to the day saw DOGE rise to an early morning high of $0.0857. Coming up against the First Major Resistance Level (R1) at $0.0854, DOGE slid to a late low of $0.0764. DOGE slid through the day’s Major Support Levels to end the session at sub-$0.0800.

Shiba inu coin (SHIB) fell by 3.83% on Sunday. Reversing a 0.44% gain from Saturday, SHIB ended the week down 2.55% to $0.00000878.

Tracking the broader market, SHIB rose to an early morning high of $0.00000922. Coming up short of the First Major Resistance Level (R1) at $0.00000926, SHIB slid to a late low of $0.00000866. SHIB fell through the First Major Support Level (S1) at $0.00000897 and the Second Major Support Level (S2) at $0.00000881 to end the day at sub-$0.00000880.

Network and Twitter news updates provided little price support, with contagion fear hitting investor sentiment.

FTX news updates reignited contagion fear following reports of FTX owing its top 50 creditors close to $3.1 billion. Alarmingly FTX owes $1.45 billion to the top ten creditors. The numbers raised the chances of more FTX-fueled bankruptcies.

DOGE saw sizeable losses, with uncertainty over Twitter and its crypto integration plans weighing.

However, SHIB updates provided a price cushion. Over the weekend, Shiba Inu News discussed a partnership between SHIB and Amazon Inc. (AMZN). Shiba Inu News said,

“BREAKING: A massive partnership between SHIB and Amazon is being worked on. It could happen as soon as December 1 if negotiations continue to go well.”

Shiba Inu News added,

“We’ll have more on the story soon. We were FIRST to break when Robinhood (HOOD) was listing SHIB.”

In a second tweet, Shiba Inu News said,

“MORE UPDATES: Our insider at Amazon is on their leadership team. They’ve been meeting internally since Q4 began. Oftentimes, crypto is a big topic of discussion. They’ve been impressed with the growth of SHIB and the total holders worldwide. Expect a partnership in Q1 2023.”

For today, barring news of Twitter resuming its crypto integration plans, FTX contagion will remain the focal point. The weekend news of FTX’s exposure to creditors will likely leave investors anxious until the identities of the creditors are available.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 2.21% to $0.0752. A bearish start to the day saw DOGE fall from an early high of $0.0771 to a low of $0.0735.

The First Major Support Level (S1) at $0.0736 limited the downside.

Technical Indicators

DOGE needs to move through the $0.0797 pivot to target the First Major Resistance Level (R1) at $0.0829 and the Sunday high of $0.0857. A return to $0.0800 would signal a bullish afternoon session. However, the crypto news wires need to be crypto-friendly to support a breakout session.

In the event of an extended afternoon breakout session, the bulls could take a run at the Second Major Resistance Level (R2) at $0.0890 and $0.0900. The Third Major Resistance Level (R3) sits at $0.0983.

Failure to move through the pivot ($0.0797) would leave the First Major Support Level (S1) at $0.0736 in play. However, barring another extended sell-off, DOGE should avoid sub-$0.0700. The Second Major Support Level (S2) at $0.0704 should limit the downside.

The Third Major Support Level (S3) sits at $0.0611.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0857. The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bearish.

A move through R1 ($0.0829) would give the bulls a run at the 50-day EMA ($0.0857) and R2 ($0.0890). However, failure to move through the 50-day EMA would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 2.28% to $0.00000858. A bearish start to the day saw SHIB fall from an early high of $0.00000879 to a low of $0.00000841.

SHIB fell through the First Major Support Level (S1) at $0.00000855 before finding support.

Technical Indicators

SHIB needs to move through the $0.00000889 pivot to target the First Major Resistance Level (R1) at $0.00000911 and the Sunday high of $0.00000922. A return to $0.00000920 would signal a bullish afternoon session. However, any further contagion news would test buyer appetite.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000945 and resistance at $0.00000950. The Third Major Resistance Level (R3) sits at $0.00001001.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000855 in play. Barring another extended sell-off, SHIB should avoid sub-$0.00000800. The Second Major Support Level (S2) at $0.00000833 should limit the downside.

The Third Major Support Level (S3) sits at $0.00000777.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000928. This morning, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00000911) would give the bulls a run at the 50-day EMA ($0.00000928) and R2 ($0.00000945). However, failure to move through the 50-day EMA would leave SHIB under pressure.