DOGE Bears to Target Sub-$0.850 on Twitter Coin and DOGE Uncertainty
- Dogecoin (DOGE) and shiba inu coin (SHIB) bucked the broader market trend, with the pair extending their losing streaks to four sessions.
- Binance news and investor sentiment towards Twitter integration plans weighed, with the NASDAQ Index failing to reverse morning losses.
- The technical indicators are bearish, signaling further losses as the Twitter trades unwind.
On Monday, dogecoin (DOGE) fell by 2.80%. Following a 3.63% loss on Sunday, DOGE ended the day at $0.0902. Notably, DOGE failed to revisit $0.10 for the fifth consecutive session and fell to sub-$0.0900 for the first time since November 27.
A bearish start to the day saw DOGE slide from an early high of $0.0931 to an early morning low of $0.0848. DOGE fell through the First Major Support Level (S1) at $0.0905 and the Second Major Support Level (S2) at $0.0883. However, finding late support, DOGE broke back through S2 to end the day at $0.0902.
Shiba inu coin (SHIB) fell by 1.64% on Monday. Following a 0.65% loss on Sunday, SHIB ended the day at $0.00000897. SHIB last ended the day at sub-$0.00000900 on November 22.
Tracking the broader market, SHIB slid from an early high of $0.00000912 to an early low of $0.00000843. SHIB fell through the Major Support Levels of the day before finding afternoon support. SHIB broke back through S3 ($0.00000872) and S2 ($0.00000894) to wrap up the day at $0.00000897.
Crypto Risk Sentiment and the NASDAQ Index Delivered a Choppy DOGE Session
Following a bearish weekend, DOGE and SHIB failed to steady at the start of the week. Binance news weighed on the pair through the morning session, with DOGE falling to sub-$0.0850 for the first time since November 25.
While the NASDAQ Index supported a partial recovery through the afternoon session, investor sentiment toward the integration of DOGE on the Twitter platform continued to pressure the pair.
DOGE has failed to recover from the reports of Twitter planning to launch Twitter Coin, which would impact DOGE adoption.
A lack of updates from Elon Musk or Twitter would leave DOGE and SHIB on the defensive. However, the US CPI Report and the NASDAQ Index will likely provide direction later today.
Softer inflation numbers would ease pressure on the Fed to support riskier assets.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was down 0.55% to $0.0897. A mixed start to the day saw DOGE rise to an early high of $0.0919 before falling to a low of $0.0896.
DOGE needs to avoid a fall through the $0.0894 pivot to target the First Major Resistance Level (R1) at $0.0939. A return to $0.0930 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 $0.0977. The Third Major Resistance Level (R3) sits at $0.1060.
A fall through the pivot ($0.0894) would bring the First Major Support Level (S1) at $0.0956 into play. However, barring another extended sell-off, DOGE should avoid the Second Major Support Level (S2) at $0.0811. The Third Major Support Level (S3) sits at $0.0728.
The EMAs sent a bearish signal, with DOGE sitting below the 200-day EMA, currently at $0.0937. After Monday’s bearish cross, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA narrowed to the 200-day EMA. The price signals were bearish.
A move through the 200-day EMA ($0.0937) and R1 ($0.0939) would bring the 50-day ($0.0955) and the 100-day ($0.0958) EMAs into play. However, failure to move through the 200-day EMA ($0.0937) would leave DOGE under intense selling pressure.
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was down 1.00% to $0.00000888. A bearish start to the day saw SHIB fall from an early high of $0.00000900 to a low of $0.00000883.
SHIB needs to avoid the $0.00000884 pivot to target the First Major Resistance Level (R1) at $0.00000925. A return to $0.00000910 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 $0.00000953. The Third Major Resistance Level (R3) sits at $0.00001022.
A fall through the pivot would bring the First Major Support Level (S1) at $0.00000856 into play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000840 and the Second Major Support Level (S2) at $0.00000815.
The Third Major Support Level (S3) sits at $0.00000746.
The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000915. This morning, the 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.
A move through the 50-day EMA ($0.00000915) would support a breakout from the 100-day EMA ($0.00000922) and R1 ($0.00000925) to target the 200-day EMA ($0.00000947). However, failure to move through the 50-day EMA ($0.00000915) would leave SHIB under pressure.