DOGE Bears to Target a Return to Sub-$0.0690 with SHIB in Tow

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) enjoyed bullish starts to 2023.
• Gains were modest, with the broader crypto market delivering support in light holiday trading.
• However, the technical indicators remain bearish, signaling further losses.

Dogecoin (DOGE) rose by 0.29% on Sunday. Following a 2.79% rally on Saturday, DOGE ended the day at $0.0703. Notably, DOGE visited sub-$0.0700 for the fifth consecutive session.

A mixed start to the day saw DOGE fall to a mid-morning low of $0.0690. Steering clear of the First Major Support Level (S1) at $0.0683, DOGE rose to a late high of $0.0708. However, coming up short of the First Major Resistance Level (R1) at $0.0716, DOGE eased back to end the day at $0.0703.

Shiba inu coin (SHIB) rose by 0.62% on Sunday. Following a 0.37% gain on Saturday, SHIB ended the day at $0.00000812.

Tracking the broader market, SHIB fell to a mid-morning low of $0.00000799. Finding support at the First Major Support Level (S1) at $0.00000799, SHIB rose to a late high of $0.00000814. However, coming up short of the First Major Resistance Level (R1) at $0.00000817, SHIB eased back to end the day at $0.00000812.

DOGE and SHIB Remain in the Hands of Twitter and Shibarium Updates

It was a quiet start to the year, with investors ushering in the New Year. Lighter trading volumes left DOGE and SHIB within relatively tight ranges.

However, Twitter updates on plans to integrate DOGE onto the payment platform and Shibarium upgrade news remain the main drivers for DOGE and SHIB, respectively.

DOGE has struggled since the Elon Musk poll on Twitter, where the community voted in favor of Musk stepping down. Since pausing the project, there has been no chatter on the timing of including cryptos on the payment platform. The lack of commentary led to DOGE sliding back from the December high of $0.1118.

Rumors of DOGE shifting to a Proof-of-Stake protocol added to the bearish mood at the end of the year.

In contrast, SHIB has found support, with investors expecting the Shibarium upgrade to happen in January.

Today, a lack of updates from Twitter and SHIB developers would leave DOGE and SHIB in the hands of the broader market. A lack of news would also give the NASDAQ mini more influence in the final hour (UTC).

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 1.28% to $0.0694. A bearish start to the day saw DOGE fall from an early high of $0.0703 to a low of $0.0690. DOGE tested the First Major Support Level (S1) at $0.0693 early on.

Technical Indicators

DOGE needs to move through the $0.0700 pivot to target the First Major Resistance Level (R1) at $0.0711. A return to $0.0710 would signal a bullish afternoon session. However, the crypto news wires and Twitter news 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 $0.0718. The Third Major Resistance Level (R3) sits at $0.0736.

Failure to move through the pivot ($0.0700) would leave the First Major Support Level (S1) at $0.0693 in play. However, barring another extended sell-off, DOGE should avoid sub-$0.0680. The Second Major Support Level (S2) at $0.0682 should limit the downside. The Third Major Support Level (S3) sits at $0.0664.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0718. This morning, the 50-day EMA pulled back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA. The price signals were bearish.

A move through R1 ($0.0711) would support a run at the 50-day EMA ($0.0718) and R2 ($0.0718). A breakout from the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.0718) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.25% to $0.00000810. A mixed start to the day saw SHIB rise to an early high of $0.00000814 before falling to a low of $0.00000802. SHIB tested the First Major Support Level (S1) at $0.00000803 early on.

Technical Indicators

SHIB needs to move through the $0.00000808 pivot to target the First Major Resistance Level (R1) at $0.00000818 and test resistance at $0.00000820. A return to $0.00000810 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market and updates on the Shibarium upgrade.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000823. The Third Major Resistance Level (R3) sits at $0.00000838.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000803 in play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000790. The Second Major Support Level (S2) at $0.00000793 should limit the downside.

The Third Major Support Level (S3) sits at $0.00000778.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000814. This morning, the 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A breakout from the 50-day EMA ($0.00000814) would support a move through R1 ($0.00000818) to bring R2 ($0.00000823) and the 100-day EMA ($0.00000830) into view. A move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.00000814) would leave SHIB under pressure.