DOGE Bears Target Sub-$0.0850 on Elon Musk and Twitter Silence

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) saw red on Wednesday, with DOGE leading the top ten cryptos into the red.
• Investor angst over integration onto the Twitter platform and the Fed sent DOGE and SHIB into reverse.
• The technical indicators remained bearish, signaling further losses.

On Wednesday, dogecoin (DOGE) slid by 3.18%. Reversing a 1.11% gain from Tuesday, DOGE ended the day at $0.0883. Notably, DOGE ended the session at sub-$0.0900 for the first time since November 26.

After a range-bound morning, DOGE rose to a late afternoon high of $0.0925 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.0955, DOGE fell to a low of $0.0872. Finding support at the First Major Support Level (S1) at $0.0870, DOGE revisited 0.0890 before easing back.

Shiba inu coin (SHIB) declined by 2.40% on Wednesday. Reversing a 2.23% gain from Tuesday, SHIB ended the day at $0.000009895.

A bullish start to the day saw SHIB rise to an early high of $0.00000927. However, coming up short of the First Major Resistance Level (R1) at $0.00000947, SHIB slid to a late low of $0.00000887. Steering clear of the First Major Support Level (S1) at $0.00000875, SHIB revisited $0.00000901 before easing back.

Twitter and Elon Musk Silence Leave DOGE and SHIB Under Pressure

Since the recent speculation of Twitter planning to launch Twitter Coin, DOGE and SHIB have continued to reverse gains since the acquisition of Twitter.

Hopes of DOGE integration onto the Twitter payment platform have receded, with Elon Musk and Twitter remaining silent on its crypto integration plans.

The collapse of FTX may be a reason for the silence, with Elon Musk likely wanting to avoid increased scrutiny. However, DOGE and SHIB have struggled, with DOGE down from a December 5 high of $0.1118. A continued silence could see DOGE and SHIB return to pre-Twitter acquisition levels.

While hopes of integration onto the Twitter platform linger, the Fed added to the bearish mood on Wednesday. A hawkish 50-basis point rate hike weighed on investor sentiment, leaving the NASDAQ Index, DOGE, and SHIB in the red.

Today, US economic indicators will draw interest though positive numbers may not be enough to support a bullish session. The Fed’s upward revision to interest rate forecasts raised recession fears, which will likely leave DOGE and SHIB in the hands of the NASDAQ.

Increased regulatory scrutiny and Binance chatter are also considerations for investors. However, an Elon Musk Tweet to support the integration of DOGE onto the Twitter platform could see the pair reverse recent losses.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.91% to $0.0875. A mixed start to the day saw DOGE rise to an early high of $0.0888 before falling to a low of $0.0863.

Technical Indicators

DOGE needs to move through the $0.0893 pivot to target the First Major Resistance Level (R1) at $0.0915 and the Wednesday high of $0.0925. A return to $0.0900 would signal a bullish afternoon session. However, the NASDAQ Composite Index and Twitter updates need to be DOGE-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 $0.0946 and $0.0950. The Third Major Resistance Level (R3) sits at $0.0999.

Failure to move through the pivot ($0.0893) would leave the First Major Support Level (S1) at $0.0862 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.0850 and the Second Major Support Level (S2) at $0.0840. The Third Major Support Level (S3) sits at $0.0787.

The EMAs sent a bearish signal, with DOGE sitting below the 200-day EMA, currently at $0.0933. This morning, the 50-day EMA converged on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bearish.

A bearish cross of the 50-day EMA through the 200-day EMA would support a fall through S1 ($0.0862) to bring $0.0850 into play. However, a move through R1 ($0.0915) would give the bulls a run at the 200-day ($0.0933) and 50-day ($0.0934) EMAs.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down by 0.45% to $0.00000891. A mixed start to the day saw SHIB rise to an early high of $0.0000090 before falling to a low of $0.00000875.

The First Major Support Level (S1) at $0.00000879 delivered early support.

Technical Indicators

SHIB needs to move through the $0.00000903 pivot to target the First Major Resistance Level (R1) at $0.00000919 and the Wednesday high of $0.00000927. A return to $0.00000920 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market and the NASDAQ Index.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000943. The Third Major Resistance Level (R3) sits at $0.00000983.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000879 in play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000850. The Second Major Support Level (S2) at $0.00000863 should limit the downside.

The Third Major Support Level (S3) sits at $0.00000823.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000911. This morning, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.00000911) would support a breakout from the 100-day EMA ($0.00000918) and R1 ($0.00000919) to target the R2 ($0.00000943). However, failure to move through the 50-day EMA ($0.00000911) would leave SHIB under pressure.