A DOGE Return to $0.09 in the Hands of the NASDAQ and Elon Musk


Key Insights:

  • Dogecoin (DOGE) and shiba inu coin (SHIB) succumbed to another bearish crypto session on Thursday, with DOGE leading the top ten cryptos into the deep red.
  • Following Wednesday’s hawkish Fed rate hike, economic indicators reignited recession fears, weighing on the NASDAQ Index, DOGE, and SHIB.
  • The technical indicators remain bearish, signaling further losses.

On Thursday, dogecoin (DOGE) slid by 3.85%. Following a 3.18% loss on Wednesday, DOGE ended the day at $0.0849. Notably, DOGE ended the session at sub-$0.0900 for the second time since November 26.

A mixed start to the day saw DOG rise to an early high of $0.0888 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.0915, DOGE fell through the First Major Support Level (S1) at $0.0862 to a late low of $0.0840. Finding support at the Second Major Support Level (S2) at $0.0840, DOGE ended the day at $0.0849.

Shiba inu coin (SHIB) fell by 1.01% on Thursday. Following a 2.40% loss on Wednesday, SHIB ended the day at $0.00000886.

A bullish start to the day saw SHIB rise to an early high of $0.00000900. However, coming up short of the First Major Resistance Level (R1) at $0.00000919, SHIB slid to an early low of $0.00000875. Finding support at the First Major Support Level (S1) at $0.00000879, SHIB revisited $0.00000894 before easing back.

Twitter and Elon Musk Silence Left DOGE and SHIB on the Defensive

Twitter and Elon Musk’s silence on plans to integrate DOGE onto the Twitter payment platform continued to weigh on buyer appetite. DOGE has suffered sizeable falls in risk-off sessions, reflecting investor speculation on including DOGE as a payment option.

With no updates for investors to consider and a lack of response to the rumors of Twitter Coin, DOGE and SHIB remain on the back foot.

On Thursday, market risk sentiment added to the bearish mood, with economic data from China and the US reigniting recession fears. The NASDAQ Index slid by 3.23%, dragging DOGE, SHIB, and the broader crypto market into the deep red.

Today, private sector PMI numbers for December will draw interest. A lack of news from Twitter or comments from Elon Musk will likely leave DOGE and SHIB in the hands of the broader crypto market and the NASDAQ Index.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was up 1.65% to $0.0863. A bullish start to the day saw DOGE rise from an early low of $0.0845 to a high of $0.0865.

DOGEUSD 161222 Daily Chart

Technical Indicators

DOGE needs to avoid the $0.0859 pivot to target the First Major Resistance Level (R1) at $0.0878 and the Thursday high of $0.0888. A return to $0.0880 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 $0.0907. The Third Major Resistance Level (R3) sits at $0.0955.

A fall through the pivot ($0.0859) would bring the First Major Support Level (S1) at $0.0830 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.0820 and the Second Major Support Level (S2) at $0.0811. The Third Major Support Level (S3) sits at $0.0763.

DOGEUSD 161222 Hourly Chart

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0920. This morning, the 50-day EMA pulled back from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The price signals were bearish.

A move through R1 ($0.0878) would bring (R2) and the 50-day EMA ($0.0920) into play. However, failure to move through 50-day EMA ($0.0920) would leave DOGE under pressure.

DOGEUSD 161222 4 Hourly Chart

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up by 1.35% to $0.00000898. A mixed start to the day saw SHIB fall to an early low of $0.00000882 before rising to a high of $0.00000898.

SHIBUSD 161222 Daily Chart

Technical Indicators

SHIB needs to avoid the $0.00000887 pivot to target the First Major Resistance Level (R1) at $0.00000899 and the Thursday high of $0.00000900. A return to $0.00000900 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market and the NASDAQ Index.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000912 and resistance at $0.00000920. The Third Major Resistance Level (R3) sits at $0.00000937.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000874 into play. However, barring another extended sell-off, SHIB should avoid sub-$0.00000850. The Second Major Support Level (S2) at $0.00000862 should limit the downside.

The Third Major Support Level (S3) sits at $0.00000837.

SHIBUSD 161222 Hourly Chart

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000907. This morning, the 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.00000899) would give the bulls a run at the 50-day EMA ($0.00000907) and R2 ($0.00000912). However, failure to move through the 50-day EMA ($0.00000907) would leave SHIB under pressure.

SHIBUSD 161222 4 Hourly Chart



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