DOGE Bulls Need a Return to $0.0780 or Face a Pullback to Sub-$0.0750

Key Insights:

• Dogecoin (DOGE) and shiba inu coin (SHIB) joined the broader crypto market in negative territory on Sunday.
• There were no crypto events or external market forces to provide direction, leading to profit taking over the holidays.
• However, the technical indicators remain bearish, signaling further losses.

On Sunday, dogecoin (DOGE) fell by 1.93%. Reversing a 0.26% gain from Saturday, DOGE ended the week down by 2.93% to $0.0761. Notably, DOGE ended the session at sub-$0.0800 for the tenth consecutive day.

A mixed start to the day saw DOGE rise to an early morning high of $0.0777. Coming up short of the First Major Resistance Level (R1) at $0.0783, DOGE slid to an early afternoon low of $0.0731. DOGE fell through the Major Support Levels before finding afternoon support.

DOGE broke back through the Third Major Support Level (S3) at $0.0745 and the Second Major Support Level (S2) at $0.0760 to end the day at $0.0761.

Shiba inu coin (SHIB) fell by 0.48% on Sunday. Partially reversing a 0.73% gain from Saturday, SHIB ended the week down 3.15% to $0.00000828. SHIB ended the day at sub-$0.0000090 for the twelfth consecutive session.

A bullish start to the day saw SHIB rise to an early morning high of $0.00000839. SHIB broke through the First Major Resistance Level (R1) at $0.00000837 before sliding to an early afternoon low of $0.00000820. SHIB fell through the First Major Support Level (S1) at $0.00000825 before ending the day at $0.00000828.

There were no Twitter or Elon Musk updates to draw investor attention on Sunday. A dip in trading volumes coincided with profit-taking as investors consider what lies ahead in 2023.

In the wake of the FTX bankruptcy, 2023 could be the year regulatory reforms hit the crypto market. However, a more robust regulatory environment could support the broader market, with the digital asset space needing to restore investor confidence.

For DOGE, integration onto the Twitter platform remains the focal point, with SHIB likely to hold onto DOGE’s coattails.

With the holidays in full swing and the US markets closed, we could see investors tread carefully today. While regulatory risk is a crypto market headwind, investors also need to consider Fed monetary policy and the economic outlook.

Dogecoin (DOGE) Price Action

At the time of writing, DOGE was down 0.26% to $0.0759. A mixed start to the day saw DOGE fall to an early low of $0.0752 before rising to a high of $0.0766.

Technical Indicators

DOGE needs to avoid the $0.0756 pivot to target the First Major Resistance Level (R1) at $0.0782. A return to $0.0780 would signal a bullish afternoon session. However, the crypto news wires 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 $0.0802. The Third Major Resistance Level (R3) sits at $0.0848.

A fall through the pivot ($0.0756) would bring the First Major Support Level (S1) at $0.0736 into play. However, barring another extended sell-off, DOGE should avoid sub-$0.0730 and the Second Major Support Level (S2) at $0.0710. The Third Major Support Level (S3) sits at $0.0664.

The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0777. This morning, the 50-day EMA fell back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The price signals were bearish.

A move through the 50-day EMA ($0.0777) and R1 ($0.0782) would bring R2 ($0.0802) into view. However, failure to move through the 50-day EMA ($0.0777) would leave DOGE under pressure.

Shiba Inu Coin (SHIB) Price Action

At the time of writing, SHIB was up 0.48% to $0.00000832. A mixed start to the day saw SHIB fall to an early low of $0.00000827 before rising to a high of $0.00000835.

Technical Indicators

SHIB needs to avoid a fall through the $0.00000829 pivot to target the First Major Resistance Level (R1) at $0.00000838 and the Sunday high of $0.00000839. A return to $0.00000835 would signal a bullish afternoon session. However, SHIB will likely take its cues from the broader crypto market.

In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000848 and resistance at $0.00000850. The Third Major Resistance Level (R3) sits at $0.00000867.

A fall through the pivot would bring the First Major Support Level (S1) at $0.00000819 into play. However, barring an extended sell-off, SHIB should avoid sub-$0.00000815 and the Second Major Support Level (S2) at $0.00000810.

The Third Major Support Level (S3) sits at $0.00000791.

The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000839. This morning, the 50-day EMA fell 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 R1 ($0.00000838) and the 50-day EMA ($0.00000839) would give the bulls a run at R2 ($0.00000848). A breakout from the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.00000839) would leave SHIB under pressure.