DOGE eyes correction up to $0.0850 targeting $0.090 to ease FTX contagion

The Chiba Inu coin (SHIB) rose 4.76% on Tuesday. After reversing its 4.21% decline from Monday, SHIB stock ended the day at $0.00000881.

Tracking the broader market, SHIB stock fell to a mid-morning low of $0.00000817. After finding support at the first major support level (S1) at $0.00000816, SHIB rose to an early afternoon high of $0.00000883. SHIB breached the first major resistance level (R1) at $0.00000873 to end the day at $0.00000881.

FTX contagion eased on Tuesday, providing support for DOGE, SHIB, and the broader market. News updates on FTX’s assets showed a large cash balance that should mitigate the effects of FTX’s bankruptcy on creditors.

Reports from Tron’s Justin Sun and Ripple’s Brad Garlinghouse have also shown interest in the FTX asset.

However, DOGE’s Twitter news remained negative. There was no update on Twitter resuming the crypto integration project that would drive adoption of DOGE.

This morning, however, investor sentiment has improved further. The risk of FTX infection remains the main driver. Downside risks will continue until the court reveals the identity of FTX’s creditors. On Tuesday, the judge presiding over FTX’s bankruptcy proceedings agreed to clarify the identity of FTX’s creditors.

Dogecoin (DOGE) price action

At the time of writing, DOGE stock was up 2.93%, at $0.0808. A bullish start to the day saw the DOGE rise from an early low of $0.0777 to a high of $0.0810.

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