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SHIB Bulls to Target a Return to $0.0000095 as DOGE Struggles

By:
Bob Mason
Updated: Dec 19, 2022, 08:00 GMT+00:00

Following a mixed Sunday session, DOGE and SHIB are in the red this morning. Market risk appetite weighed as the Asian session turned bearish on COVID.

DOGE and SHIB - technical analysis - FX Empire

In this article:

Key Insights:

  • Dogecoin (DOGE) and shiba inu coin (SHIB) went in different directions on Sunday, with SHIB bucking a bearish market trend.
  • Twitter chatter and the broader crypto market weighed on DOGE, while SHIB network news delivered a breakout SHIB session.
  • However, the technical indicators remain bearish, signaling further losses.

On Sunday, dogecoin (DOGE) fell by 1.01%. Partially reversing a 4.35% rally from Saturday, DOGE ended the week down by 15.52% to $0.0784. Notably, DOGE ended the session at sub-$0.0800 for the third consecutive day.

A mixed start to the day saw DOG rise to an early high of $0.0800 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.0806, DOGE fell to a late morning low of $0.0776. However, steering clear of the First Major Support Level (S1) at $0.0767, DOGE retested resistance at $0.0800 before falling back into the red.

Shiba inu coin (SHIB) rose by 3.26% on Sunday. Following a 1.22% gain on Saturday, SHIB ended the week down by 6.14% to $0.00000856. SHIB ended the day at sub-$0.0000090 for the fifth consecutive session.

A bullish start to the day saw SHIB rally to an early high of $0.00000902. SHIB broke through the Major Resistance Levels before falling back through the Major Resistance Levels to sub-$0.00000840.

However, finding afternoon support, SHIB broke back through the First Major Resistance Level (R1) at $0.00000843 and briefly through the Second Major Resistance Level (R2) at $0.00000858 before ending the day at $0.00000856.

Twitter and Elon Musk Leaves DOGE on the Back Foot

Lingering hopes of Twitter integrating DOGE onto the Twitter payment platform have cushioned the downside for DOGE. However, a lack of progress toward integration and the collapse of FTX has resulted in DOGE reversing its Twitter gains.

Adding to the bearish mood was an overnight Elon Musk tweet. The Twitter CEO posted a poll asking,

“Should I step down as head of Twitter? I will abide by the results of this poll.”

The poll followed another Musk tweet stating that there would be a vote for all material policy changes. DOGE and SHIB would likely need Elon Musk in charge of Twitter to push for the integration of cryptos onto the payment platform.

In contrast, SHIB news delivered a trend-bucking bullish session on Sunday. Speculation about a SHIB tweet provided price support, with the SHIB Army considering the tweet to be a countdown for the Shibarium update. Shibarium is a layer-2 upgrade that aims to deliver faster transactions at lower fees.

Barring an Elon Musk announcement in support of DOGE, Shibarium could give SHIB the upper hand near-term. However, external market forces will need to be crypto friendly to support further gains. Economic recession fears will be one factor that could pair SHIB and DOGE back today.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 1.40% to $0.0773. A mixed start to the day saw DOGE rise to an early high of $0.0796 before falling to a low of $0.0771.

DOGE tested the First Major Support Level (S1) at $0.0773 early on.

DOGE sees more red.
DOGEUSD 191222 Daily Chart

Technical Indicators

DOGE needs to move through the $0.0787 pivot to target the First Major Resistance Level (R1) at $0.0797 and the Sunday high of $0.0800. A return to $0.0800 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 $0.0811. The Third Major Resistance Level (R3) sits at $0.0835.

Failure to move through the pivot ($0.0787) would leave the First Major Support Level (S1) at $0.0773 in play. However, barring another extended sell-off, DOGE should avoid sub-$0.0750. The Second Major Support Level (S2) at $0.0763 should limit the downside. The Third Major Support Level (S3) sits at $0.0739.

DOGE support levels in play.
DOGEUSD 191222 Hourly Chart

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0852. 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.

While a move through R1 ($0.0797) would bring R2 ($0.0811) into play, DOGE will likely fall short of R3 ($0.0835) and the 50-day EMA ($0.0852). However, failure to take a run at the 50-day EMA ($0.0852) would leave DOGE under pressure.

EMAs are bearish.
DOGEUSD 191222 4 Hourly Chart

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 0.47% to $0.00000852. A mixed start to the day saw SHIB rise to an early morning high of $0.00000871 before falling to a low of $0.00000847.

SHIB gives up early gains.
SHIBUSD 191222 Daily Chart

Technical Indicators

SHIB needs to move through the $0.00000859 pivot to target the First Major Resistance Level (R1) at $0.00000899 and the Sunday high of $0.00000902. A return to $0.00000900 would signal a bullish afternoon session. However, SHIB will likely take its cues from Shibarium news updates and the NASDAQ Index.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000942 and resistance at $0.00000950. The Third Major Resistance Level (R3) sits at $0.00001025.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.00000816 in play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000800 and the Second Major Support Level (S2) at $0.00000776.

The Third Major Support Level (S3) sits at $0.00000693.

SHIB support levels in play below the pivot.
SHIBUSD 191222 Hourly Chart

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000875. This morning, the 50-day EMA slipped 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 the 50-day EMA ($0.00000875) would bring the 100-day EMA ($0.00000894) and R1 ($0.00000899) into play. However, failure to move through the 50-day EMA ($0.00000875) would leave SHIB under pressure.

EMAs are bearish.
SHIBUSD 191222 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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