DOGE Remains at Risk of a Fall to Sub-$0.070 with the Bears in Control

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) hit reverse on Wednesday, joining the broader crypto market in negative territory.
• FTX and Sam Bankman-Fried news updates overshadowed better-than-expected US consumer confidence numbers and a bullish NASDAQ Index.
• The technical indicators remain bearish, signaling further losses.

On Wednesday, dogecoin (DOGE) fell by 1.47%. Partially reversing a 4.90% rally from Tuesday, DOGE ended the day at $0.0738. Notably, DOGE ended the session at sub-$0.0800 for the sixth consecutive day.

A mixed start to the day saw DOGE rise to an early morning high of $0.0751. However, coming up short of the First Major Resistance Level (R1) at $0.0765, DOGE fell to a mid-morning low of $0.0713. DOGE fell through the First Major Support Level (S1) at $0.0723 before finding support to wrap up the day at $0.0738.

Shiba inu coin (SHIB) fell by 2.37% on Wednesday. Partially reversing a 3.68% gain from Tuesday, SHIB ended the day at $0.00000825. SHIB ended the day at sub-$0.0000090 for the eighth consecutive session.

Tracking the broader market, SHIB rose to an early morning high of $0.00000848. Coming up short of the First Major Resistance Level (R1) at $0.00000858, SHIB fell to a late low of $0.00000817. SHIB fell through the First Major Support Level (S1) at $0.00000817 before a partial recovery to end the day at $0.00000825.

Twitter and FTX News Updates Leave DOGE and SHIB in the Red

DOGE resumed its downward trend mid-week, with Tuesday’s bullish session of little consolation for DOGE holders. Elon Musk’s plan to step down as Twitter CEO has left investors uncertain whether Twitter will integrate DOGE and other cryptos onto the payment platform.

It will likely boil down to who takes over. A crypto-friendly CEO should deliver DOGE and SHIB price support.

While Twitter remains a focal point, FTX news updates added to the bearish mood. The extradition of SBF to the US will likely lead to increased scrutiny of the digital asset space. SBF testimony could bring Binance into the spotlight and highlight other platforms at risk of collapse.

Significantly, lawmakers and regulators will likely use the testimony to plan the next wave of regulatory reforms.

On Wednesday, investors ignored US economic indicators, with the NASDAQ Index failing to reverse early losses.

While US economic indicators and the NASDAQ Index will influence today, investors need to monitor the crypto news wires for SBF commentary and any Elon Musk updates.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was flat at $0.0738. A mixed start to the day saw DOGE rise to an early high of $0.0743 before falling to a low of $0.0733.

Technical Indicators

DOGE needs to avoid the $0.0734 pivot to target the First Major Resistance Level (R1) at $0.0755. A move through the Wednesday high of $0.0751 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 $0.0772. The Third Major Resistance Level (R3) sits at $0.0810.

A fall through the pivot ($0.0734) would bring the First Major Support Level (S1) at $0.0717 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.070 and the Second Major Support Level (S2) at $0.0696. The Third Major Support Level (S3) sits at $0.0658.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0795. This morning, the 50-day EMA slid 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 ($0.0755) would bring R2 ($0.0772) and the 50-day EMA ($0.0795) into view. However, failure to move through the 50-day EMA ($0.0795) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.36% to $0.00000828. A range-bound start to the day saw SHIB fall to an early low of $0.00000822 before rising to a high of $0.00000831.

Technical Indicators

SHIB needs to move through the $0.00000830 pivot to target the First Major Resistance Level (R1) at $0.00000843 and the Wednesday high of $0.00000848. A return to $0.00000840 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000861. The Third Major Resistance Level (R3) sits at $0.00000892.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000812 in play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000800 and the Second Major Support Level (S2) at $0.00000799.

The Third Major Support Level (S3) sits at $0.00000768.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000855. This morning, the 50-day EMA fell 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 R1 ($0.00000843) would give the bulls a run at the 50-day EMA ($0.00000855) would bring R2 ($0.00000861). However, failure to move through the 50-day EMA ($0.00000855) would leave SHIB under pressure.