Elon Musk Reassures DOGE of Support to Deliver DOGE and SHIB Gains

Key Insights:

• On Tuesday, Elon Musk returned to the subject of Dogecoin (DOGE), reassuring investors of his unwavering support.
• DOGE rallied by 9.50%, with Shiba Inu (SHIB) surging by 31.20% on Musk support.
• Technical indicators are bullish, with DOGE sitting above the 100-day EMA.

Long-time Dogecoin (DOGE) advocate Elon Musk was back in the news this week. A $258 billion lawsuit appears to have done little to deter the man behind Tesla Inc. and SpaceX from supporting the meme coins.

Unlike many, however, Elon Musk has done more than talk, with Tesla Inc. and SpaceX accepting DOGE and SHIB for merch payments.

Despite Musk’s unwavering support, crypto investor Keith Johnson sued Elon Musk, SpaceX, and Tesla Inc. last week for promoting DOGE.

Johnson alleged he was defrauded out of money by the defendants, calling the meme coin a “Dogecoin Crypto Pyramid Scheme.”

Johnson went on to claim,

“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.”

Johnson looks to represent investors “who have lost money trading in DOGE since April 2019.”

While Musk has remained silent on the lawsuit, he has remained committed to supporting DOGE this crypto winter.

Elon Musk Delivers DOGE and SHIB Support

Overnight, news hit the wires of Elon Musk responding to calls to restate his DOGE support.

Speaking to Bloomberg at the Qatar Economic Forum, Musk responded to questions concerning the crypto market and the recent carnage.

Musk made it clear that he never said people should invest in crypto. He also noted that SpaceX, Tesla Inc., and Musk bought bitcoin (BTC) in amounts insignificant relative to cash assets.

Musk said,

“I intend to personally support Dogecoin because I just know a lot of people who are not that wealthy who have encouraged me to buy and support Dogecoin – so I’m responding to those people.”

In response to calls from employees of his companies to support Dogecoin, Musk reportedly added,

“They’ve asked me to support Dogecoin, so I’m doing so.”

While Musk talked of his support for DOGE, Shiba Inu (SHIB) piggybacked on DOGE (+9.50%), reversing most of June’s losses. On Tuesday, SHIB surged by 31.20%.

DOGE Price Action

At the time of writing, DOGE was down by 1.69% to $0.0646.

Technical Indicators

A move through the $0.0648 pivot would target the First Major Resistance Level at $0.0707.

DOGE would need the broader crypto market to support a return to $0.070.

Another extended rally would test the Second Major Resistance Level at $0.0756 and resistance at $0.080. The Third Major Resistance Level sits at $0.0864.

A fall through the pivot would test the First Major Support Level at $0.0599. Barring an extended sell-off, DOGE should steer clear of sub-$0.058. The Second Major Support Level sits at $0.0540.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal.

This morning, DOGE sat above the 100-day EMA at $0.06526. The 50-day narrowed to the 100-day EMA, with the 100-day EMA closing on the 200-day EMA: price positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from $0.070. The 200-day EMA currently sits at $0.07515.