DOGE Targets $0.0950 off Binance Support While Contagion Risk Lingers

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) enjoyed a bullish start to the week, though the gains were modest.
• News of Binance launching a crypto recovery fund eased contagion fear.
• However, the technical indicators remain bearish, with the EMAs signaling further losses.

On Monday, dogecoin (DOGE) rose by 1.18%. Partially reversing a 3.53% fall from Sunday, DOGE ended the day at $0.0858. Notably, DOGE ended the day at sub-$0.10 for the seventh consecutive session.

A bearish start to the day saw DOGE slide to an early morning low of $0.0792. DOGE fell through the First Major Support Level (S1) at $0.0813 before rallying to an early afternoon high of $0.0913. DOGE broke through the First Major Resistance Level (R1) at $0.0899 before falling back to end the day at sub-$0.0900.

Shiba inu coin (SHIB) rose by 0.78% on Monday. Partially reversing a 5.65% slide from Sunday, SHIB ended the day at $0.00000908.

Tracking the broader market, SHIB fell to an early morning low of $0.00000854. SHIB fell through the First Major Support Level (S1) at $0.00000867 before rising to an early afternoon high of $0.00000940. However, falling short of the First Major Resistance Level (R1) at $0.00000954, SHIB slipped back to sub-$0.0000090 before ending the day at $0.00000908.

Through the early part of the Monday session, FTX news and contagion risk weighed on investor appetite. However, news of Binance launching a crypto recovery fund provided market relief.

The crypto market responded strongly to the news before easing back from day highs, with the crypto market cap surging by $46 billion following the Binance announcement.

While the Binance announcement delivered support, uncertainty over the future of Twitter capped the upside for DOGE and SHIB. Despite the uncertainty of Twitter and DOGE’s integration, interest in DOGE has recovered.

According to CoinMarketCap, the number of DOGE wallets has rebounded since an FTX-fueled slump on November 5. This morning, the total number of unique addresses stood at 4,449,753.

A further upswing in wallet holders would be DOGE positive.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 1.98% to $0.0875. A mixed morning saw DOGE fall to a low of $0.0847 before rising to a high of $0.0879.

Technical Indicators

DOGE needs to avoid the $0.0854 pivot to target the First Major Resistance Level (R1) at $0.0917. A return to $0.0910 would signal a bullish afternoon session. However, Binance will need to deliver more details on the recovery fund to support an extended rally.

In the event of an extended afternoon breakout session, the bulls could take a run at the Second Major Resistance Level (R2) at $0.0975. The Third Major Resistance Level (R3) sits at $0.1096.

A fall through the pivot ($0.0854) would bring the First Major Support Level (S1) at $0.0796 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.0750 and the Second Major Support Level (S2) at $0.0733.

The Third Major Support Level (S3) sits at $0.0612.

The EMAs sent a bearish signal, with DOGE sitting below the 200-day EMA, currently at $0.0896. The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bearish.

A move through the 200-day EMA ($0.0896) would bring R1 ($0.0917) and the 50-day EMA ($0.0923) into play. However, failure to move through the 200-day EMA ($0.0896) would bring S1 ($0.0796) into view.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 1.21% to $0.00000919. A mixed start to the day saw SHIB fall to an early low of $0.00000898 before rising to a high of $0.00000921.

Technical Indicators

SHIB needs to avoid the $0.00000901 pivot to target the First Major Resistance Level (R1) at $0.00000947. A move through the Monday high of $0.00000940 would signal a bullish afternoon session. However, any contagion news would reverse any gains.

In case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000987 and resistance at $0.0000100. The Third Major Resistance Level (R3) sits at $0.00001073.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000861 into play. Barring another extended sell-off, SHIB should avoid sub-$0.00000850 and the Second Major Support Level (S2) at $0.00000815.

The Third Major Support Level (S3) sits at $0.00000729.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000995. This morning, the 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00000947) would give the bulls a run at R2 ($0.00000987) and the 50-day EMA ($0.00000995). However, failure to move through the 50-day EMA would leave SHIB under pressure.