DOGE and SHIB Slide as Sentiment Turns Bearish on China News

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) bucked the broader market trend on Saturday, with DOGE revisiting $0.10 in a breakout session.
• Elon Musk was behind the DOGE breakout, with Musk raising hopes of DOGE inclusion for Twitter 2.0 payments.
• The technical indicators are mixed, with the DOGE EMAs signaling further price gains.

On Sunday, dogecoin (DOGE) jumped by 10.67%. Reversing a 0.34% loss from Saturday, DOGE ended the week up 28.09% to $0.0985. Notably, DOGE revisited $0.10 for the first time since November 8.

A bullish morning saw DOGE rally from an early low of $0.0887 to a late morning high of $0.1079. DOGE broke through the First Major Resistance Level (R1) at $0.0939 and the Second Major Resistance Level (R2) at $0.0989. However, coming up against the Third Major Resistance Level (R3) at $0.1079, DOGE fell back to end the day at sub-$0.100.

Shiba inu coin (SHIB) rose by 2.89% on Sunday. Reversing a 1.85% loss from Saturday, SHIB ended the week up 5.58% to $0.00000927.

Tracking DOGE, SHIB rose from an early low of $0.00000899 to a late morning high of $0.00000962. SHIB broke through the First Major Resistance Level (R1) at $0.00000928 and the Second Major Resistance Level (R2) at $0.00000956. However, a bearish end to the day saw SHIB fall back through the Resistance Levels to end the day at $0.00000927.

Elon Musk delivered a DOGE breakout session that provided SHIB with much-needed price support.

Musk posted a set of slides from a recent Twitter company talk on Sunday. A fourth slide, titled Payments, did not reveal which form of payments Twitter 2.0 will accept. However, investors took this as a cue for DOGE incorporation.

The latest tweet followed reports of Elon Musk planning to upgrade DOGE with the help of Vitalik Buterin.

However, the pair were on the defensive this morning. News of protests in China over COVID-19 lockdown measures weighed on riskier assets.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 5.08% to $0.0935. A bearish start to the week saw DOGE rise to an early high of $0.0996 before sliding to a low of $0.0918.

Technical Indicators

DOGE needs to move through the $0.0984 pivot to target the First Major Resistance Level (R1) at $0.1080. A return to $0.10 would signal a bullish afternoon session. However, the crypto news wires need to be crypto-friendly to support a breakout session.

In the event of an extended afternoon breakout session, the bulls could take a run at $0.11 and the Second Major Resistance Level (R2) at $0.1176. The Third Major Resistance Level (R3) sits at $0.1368.

Failure to move through the pivot ($0.0984) would leave the First Major Support Level (S1) at $0.0888 in play. Barring an extended sell-off, DOGE should avoid sub-$0.0850 and the Second Major Support Level (S2) at $0.0792.

The Third Major Support Level (S3) sits at $0.0600.

The EMAs sent a bullish signal, with DOGE sitting above the 50-day EMA, currently at $0.0881. The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The price signals were bullish.

A hold above S1 ($0.0888) and the 50-day EMA ($0.0881) would support a run at R1 ($0.1080). However, a fall through S1 ($0.0888) and the EMAs would bring sub-$0.0800 and S2 ($0.0792) into view.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was down 4.75% to $0.00000883. A mixed start to the day saw SHIB rise to an early high of $0.00000936 before sliding to a low of $0.00000877.

SHIB fell through the First Major Support Level (S1) at $0.00000897.

Technical Indicators

SHIB needs to move through S1 and the $0.00000929 pivot to target the First Major Resistance Level (R1) at $0.00000960 and the Sunday high of $0.00000962. A return to $0.00000950 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market today.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000992 and resistance at $0.0000100. The Third Major Resistance Level (R3) sits at $0.00001055.

Failure to move through S1 and the pivot would bring the Second Major Support Level (S2) at $0.00000866 into play. Barring an extended sell-off, SHIB should avoid sub-$0.00000850 and the Third Major Support Level (S3) at $0.00000803.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000911. 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 S1 ($0.00000888) and the 50-day EMA ($0.00000911) would support a breakout from the 100-day EMA ($0.00000935) to target R1 ($0.00000960). However, failure to move through S1 and the 50-day EMA ($0.00000911) would leave S2 ($0.00000866) in view.