DOGE Ends Four Day Losing Streak but Gives Up Musk Gains

Key Insights:

• It was a bullish start to the week for DOGE and SHIB, with DOGE ending a four-day losing streak.
• Market reaction to the MiCA vote delivered broad-based crypto support.
• Key technical indicators remain bearish, with DOGE and SHIB sitting below the 50-day EMAs.

It was a bullish day for DOGE and SHIB on Monday. Risk-on sentiment early in the day and the vote on the EU’s Markets in Crypto Assets regulatory framework delivered support.

Partially reversing a 2.87% loss from Sunday, DOGE rose by 2.51% to end the day at $0.1144. SHIB partially reversed Sunday’s 2.76% loss with a 1.72% gain to end the day at $0.0000219.

EU Vote on MiCA and Elon Musk Deliver Price Support

On Monday, EU lawmakers voted against banning Proof-of-Work mining that would have banned Bitcoin (BTC). The markets reacted favorably to the vote.

The crypto majors gave up some of the gains, with the U.S equity markets weighing on the crypto markets later in the day. On Monday, the NASDAQ 100 slid by 2.04%. Tech stocks struggled ahead of the FED’s monetary policy decision on Wednesday, with the markets expecting a rate hike and more to come amidst the current inflation climate.

For DOGE, Elon Musk provided early support, announcing that he has no intentions to sell his crypto holdings. DOGE struck a day high of $0.1210 before ending the day at $0.114 levels.

DOGE Price Action

At the time of writing, DOGE was down by 0.70% to $0.1136.

Technical Indicators

DOGE will need to move through the day’s $0.1152 pivot to make a run on the First Major Resistance Level at $0.1202. DOGE would need the broader crypto market to support a move back through to $0.12 levels.

An extended rally would test the Second Major Resistance Level at $0.1259 and resistance at $0.13. The Third Major Resistance Level sits at $0.1366.

Failure to move through the pivot would bring the First Major Support Level at $0.1095 into play. Barring an extended sell-off, DOGE should steer clear of the Second Major Support Level at $0.1045.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE remains below the 50-day EMA, currently at $0.1175.

This morning, the 50-day EMA has fallen back from the 100-day and the 200-day EMAs. The 100-day EMA has pulled back from the 200-day EMA, another bearish signal.

A move through the 100-day EMA, currently at $0.1217, would support a run at $0.13.

SHIB Price Action

At the time of writing, SHIB was up by 0.23% to $0.00002195.

Technical Indicators

SHIB will need to avoid the day’s $0.0000219 pivot to make a run on the First Major Resistance Level at $0.0000225. SHIB would need the broader crypto market to support a break out from Monday’s high of $0.00002244.

An extended rally would test the Second Major Resistance Level at $0.0000230. The Third Major Resistance Level sits at $0.0000242.

A fall through the pivot would bring the First Major Support Level at $0.0000213 into play. Barring an extended sell-off, SHIB should steer clear of sub-$0.0000200. The Second Major Support Level at $0.0000207 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB currently sits below the 50-day EMA at $0.0000227.

This morning, the 50-day EMA has pulled back from the 100-day EMA. The 100-day EMA has also pulled back from the 200-day EMA, another bearish signal.

A move through the 50-day EMA would support a run at $0.000023 levels.