DOGE Eyes a Return to $0.0730 to Target $0.0750 on Network News

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) saw green on Monday.
• Commentary from the World Economic Forum (WEF) and network news contributed to the bullish day.
• However, the technical indicators remain bearish, signaling further losses.

Dogecoin (DOGE) rose by 1.71% on Monday. Following a 0.29% gain on Sunday, DOGE ended the day at $0.0715. Notably, DOGE extended its winning streak to three sessions.

A bearish start to the day saw DOGE fall to an early morning low of $0.0690. DOGE fell through the First Major Support Level (S1) at $0.0693 before rallying to a mid-morning high of $0.0735. DOGE broke through the First Major Resistance Level (R1) at $0.0711 and the Second Major Resistance Level (R2) at $0.0718.

However, a late pullback saw DOGE fall back through R2 and briefly through R1 before ending the day at $0.0715.

Shiba inu coin (SHIB) rose by 0.62% on Monday. Following a 0.62% gain on Sunday, SHIB ended the day at $0.00000817.

Tracking the broader market, SHIB fell to an early morning low of $0.00000802. Finding support at the First Major Support Level (S1) at $0.00000803, SHIB rose to a late high of $0.00000826. SHIB broke through the First Major Resistance Level (R1) at $0.00000818 and the Second Major Resistance Level (R2) at $0.00000823 before easing back to end the day at $0.00000817.

Network News Delivered DOGE and SHIB Support

As investors returned from the holidays, news of the DOGE Foundation setting up a new development fund to draw in new developers delivered support. Over the weekend, the Dogecoin Foundation announced that it transferred five million DOGE to the development fund.

According to the announcement,

“The DOGE held in this wallet will disburse rewards to developers of Dogecoin Core for work on all contributions, no matter how big or small.”

The Dogecoin Foundation added that Dogecoin Core developers and members of the Dogecoin Foundation operate the multi-signature wallet, secured with a three out of five signature threshold.

However, there were no updates on when to expect the Shibarium upgrade, which limited the SHIB upside on the day.

Today, investors should continue to monitor network updates and any Twitter or Elon Musk chatter. In the afternoon session, a lack of network updates would leave the pair in the hands of the NASDAQ Index and FOMC member chatter.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 0.14% to $0.0716. A mixed start to the day saw DOGE rise to an early high of $0.0718 before falling to a low of $0.0711.

Technical Indicators

DOGE needs to avoid a fall through the $0.0713 pivot to target the First Major Resistance Level (R1) at $0.0737. A return to $0.0730 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 $0.0758. The Third Major Resistance Level (R3) sits at $0.0803.

A fall through the pivot ($0.0713) would bring the First Major Support Level (S1) at $0.0692 into play. However, barring an extended sell-off, DOGE should avoid sub-$0.0690 and the Second Major Support Level (S2) at $0.0668. The Third Major Support Level (S3) sits at $0.0623.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0719. This morning, the 50-day EMA slipped 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 the 50-day EMA ($0.0719) would support a run at R1 ($0.0737) and the 100-day EMA ($0.0751). A breakout from the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.0719) would bring the Major Support Levels into view.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.24% to $0.00000815. A mixed start to the day saw SHIB rise to an early high of $0.00000821 before falling to a low of $0.00000811.

Technical Indicators

SHIB needs to avoid a fall through the $0.00000815 pivot to target the First Major Resistance Level (R1) at $0.00000828. A return to $0.00000820 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 $0.00000839. The Third Major Resistance Level (R3) sits at $0.00000863.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000804 into play. However, barring an extended sell-off, SHIB should avoid sub-$0.00000800 and the Second Major Support Level (S2) at $0.00000791.

The Third Major Support Level (S3) sits at $0.00000767.

The EMAs send a bearish signal, with SHIB sitting at the 50-day EMA, currently at $0.00000815. This morning, the 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA fell back from the 200-day EMA. The signals were mixed.

A breakout from the 50-day EMA ($0.00000815) would support a run at R1 ($0.00000828) and the 100-day EMA ($0.00000829). However, a fall through the 50-day EMA ($0.00000815) would leave SHIB under pressure. The 200-day EMA sits at $0.00000861.