DOGE Bulls Eye a Return to $0.0800 Though Twitter Uncertainty Remains

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) joined the broader crypto market in negative territory on Monday.
• While recessionary fears weighed on the broader market, news of Elon Musk planning to step down as the Twitter CEO sent DOGE into the deep red.
• The technical indicators remain bearish, signaling further losses.

On Monday, dogecoin (DOGE) slid by 8.93%. Following a 1.01% loss on Sunday, DOGE ended the day at $0.0714. Notably, DOGE ended the session at sub-$0.0800 for the fourth consecutive day.

A mixed start to the day saw DOG rise to an early morning high of $0.0796 before hitting reverse. Coming up against the First Major Resistance Level (R1) at $0.0797, DOGE slid to a late low of $0.0700. DOGE fell through the Major Support Levels to end the day at $0.0714.

Shiba inu coin (SHIB) slid by 4.79% on Monday. Reversing a 3.26% gain from Sunday, SHIB ended the day at $0.00000815. SHIB ended the day at sub-$0.0000090 for the sixth consecutive session.

After a bullish morning, SHIB rose to an early afternoon high of $0.00000878. However, coming up short of the First Major Resistance Level at $0.00000899, SHIB slid to a late low of $0.00000793. The reversal saw SHIB fall through the First Major Support Level at $0.00000816 to visit sub-$0.00000800 for the first time since November 10.

Elon Musk and Twitter Send DOGE and SHIB into the Deep Red

On Monday, lingering hopes of Twitter integrating DOGE onto the Twitter payment platform may have vanished.

Elon Musk held a poll on Twitter, saying,

“Should I step down as head of Twitter? I will abide by the results of this poll.”

The result of the poll weighed on buyer appetite and could remove Elon Musk support to integrate cryptos onto the platform.

Out of 17,502,391 votes, 57.5% voted in favor of Elon Musk stepping down.

Adding to the bearish mood was bearish market sentiment over Fed monetary policy and fears of a US economic recession. The bearish sentiment left the NASDAQ Index down by 1.49%, with the S&P500 falling by 0.90%.

Further speculation about a countdown referring to the Shibarium update failed to provide support. Shibarium is a layer-2 upgrade that aims to deliver faster transactions at a lower cost.

Today, Twitter news and the NASDAQ Index will remain the key drivers. If Elon Musk steps down, a crypto-friendly replacement should deliver DOGE and SHIB price support.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 3.78% to $0.0741. A bullish start to the day saw DOGE rise from an early low of $0.0712 to a high of $0.0746.

Technical Indicators

DOGE needs to avoid the $0.0737 pivot to target the First Major Resistance Level (R1) at $0.0773 and the Monday high of $0.0796. A return to $0.0770 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 $0.0833. The Third Major Resistance Level (R3) sits at $0.0929.

A fall through the pivot ($0.0737) would bring the First Major Support Level (S1) at $0.0677 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.0670 and the Second Major Support Level (S2) at $0.0641. The Third Major Support Level (S3) sits at $0.0545.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0826. This morning, the 50-day EMA slid back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The price signals were bearish.

A move through R1 ($0.0773) would bring the 50-day EMA ($0.0826) and R2 ($0.0833) into play. However, failure to move through the 50-day EMA ($0.0826) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 2.58% to $0.00000836. A bullish start to the day saw SHIB rise from an early low of $0.00000813 to a high of $0.00000838.

Technical Indicators

SHIB needs to avoid the $0.00000829 pivot to target the First Major Resistance Level (R1) at $0.00000864 and the Monday high of $0.00000878. A return to $0.00000850 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 $0.00000914. The Third Major Resistance Level (R3) sits at $0.00000999.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000779 into play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000770 and the Second Major Support Level (S2) at $0.00000744.

The Third Major Support Level (S3) sits at $0.00000659.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000868. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00000864) and the 50-day EMA ($0.00000868) would bring the 100-day EMA ($0.00000887) and R2 ($0.00000914) into play. However, failure to move through the 50-day EMA ($0.00000864) would leave SHIB under pressure.