DOGE Eyes a Return to $0.0850 to Target $0.090 on Easing FTX Contagion

Key Insights:

Dogecoin (DOGE) and shiba inu coin (SHIB) ended two-day losing streaks on Tuesday.
Twitter updates took a back seat as FTX contagion risk abated on news of FTX cash holdings and interest in FTX assets.
However, the technical indicators remain bearish, with the EMAs signaling further downside.

On Tuesday, dogecoin (DOGE) rallied by 5.23%. Reversing a 2.99% loss from Monday, DOGE ended the day at $0.0785. Notably, DOGE ended the day at sub-$0.0800 for the third consecutive session.
DOGE fell to a mid-morning low of $0.0729. Steering clear of the First Major Support Level (S1) at $0.0715, DOGE rose to an early afternoon high of $0.0796. DOGE broke through the First Major Resistance Level (R1) at $0.0774 before easing back. However, a late rally saw DOGE move back through R1 to end the day at $0.0785.

Shiba inu coin (SHIB) rose by 4.76% on Tuesday. Reversing a 4.21% slide from Monday, SHIB ended the day at $0.00000881.
Tracking the broader market, SHIB fell to a mid-morning low of $0.00000817. Finding support at the First Major Support Level (S1) at $0.00000816, SHIB rallied to an early afternoon high of $0.00000883. SHIB broke through the First Major Resistance Level (R1) at $0.00000873 to end the day at $0.00000881.
FTX contagion risk eased on Tuesday, delivering DOGE, SHIB, and the broader market with support. News updates on FTX assets showed a sizeable cash balance that would soften the impact of the FTX bankruptcy on creditors.
Reports of Tron’s Justin Sun and Ripple’s Brad Garlinghouse showing interest in FTX assets also provided support.
However, Twitter news remained DOGE negative. There was no update on Twitter resuming the crypto integration project that would drive DOGE adoption.
This morning, investor sentiment improved further, however. FTX contagion risk remains the key driver. Downside risks will linger until the Court reveals the identity of FTX’s creditors. On Tuesday, the Judge presiding over the FTX bankruptcy proceedings agreed to redact the identity of FTX creditors.
Dogecoin (DOGE) Price Action
At the time of writing, DOGE was up 2.93% to $0.0808. A bullish start to the day saw DOGE rise from an early low of $0.0777 to a high of $0.0810.

Technical Indicators
DOGE needs to avoid the $0.0770 pivot to retarget the First Major Resistance Level (R1) at $0.0811. A move through the morning high of $0.0810 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 the Second Major Resistance Level (R2) at $0.0837 and $0.0850. The Third Major Resistance Level (R3) sits at $0.0904.
A fall through the pivot ($0.0770) would bring the First Major Support Level (S1) at $0.0744 into play. Barring another extended sell-off, DOGE should avoid sub-$0.0700. The Second Major Support Level (S2) at $0.0703 should limit the downside. However, further signs of FTX contagion would bring sub-$0.0700 into view.
The Third Major Support Level (S3) sits at $0.0636.

DOGEUSD 231122 Hourly Chart
The EMAs sent a bearish signal, with DOGE sitting below the 50-day EMA, currently at $0.0822. The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA converging on the 200-day EMA. The price signals were bearish.
A move through R1 ($0.0811) and the 50-day EMA ($0.0822) would give the bulls a run at R2 ($0.0837) and $0.0850. However, failure to move through the 50-day EMA would leave DOGE under pressure. A bearish cross of the 100-day EMA through the 200-day EMA would give the bears a run at sub-$0.0700.

DOGEUSD 231122 4 Hourly Chart
Shiba Inu Coin (SHIB) Price Action
At the time of writing, SHIB was up 1.70% to $0.00000896. A bullish start to the day saw SHIB rise from an early low of $0.00000874 to a high of $0.00000900.

SHIBUSD 231122 Daily Chart
Technical Indicators
SHIB needs to avoid a fall through the $0.00000860 pivot to target the First Major Resistance Level (R1) at $0.00000904. A return to $0.00000900 would signal a bullish afternoon session. However, any further contagion news would test buyer appetite.
In the case of an extended rally, SHIB would likely test the Second Major Resistance Level (R2) at $0.00000926 and resistance at $0.00000950. The Third Major Resistance Level (R3) sits at $0.00000992.
A fall through the pivot would bring the First Major Support Level (S1) at $0.00000838 into play. Barring another extended sell-off, SHIB should avoid sub-$0.00000800 and the Second Major Support Level (S2) at $0.00000794.
The Third Major Support Level (S3) sits at $0.00000728.

SHIBUSD 231122 Hourly Chart
The EMAs send a bearish signal, with SHIB sitting below the 50-day EMA, currently at $0.00000902. This morning, the 50-day EMA eased 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 the 50-day EMA ($0.00000902) would support a breakout from R1 ($0.00000904) to give the bulls a run at R2 ($0.00000926). However, failure to move through the 50-day EMA would leave SHIB under pressure.

This article has been originally published at: https://www.fxempire.com/forecasts/article/doge-eyes-a-return-to-0-0850-to-target-0-090-on-easing-ftx-contagion-1207583