Top 3 Cryptocurrencies To Watch This Week, ADA, DOGE, ETH: Are DOGE Bulls Losing Conviction?

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Last Updated May 23rd 2022
6 Min Read
  • The $0.62 supply zone appears a distant dream for Cardano price, as the winning streak falters.
  • Dogecoin price needs a daily closing above the falling trendline resistance $0.087 to extend the uptrend.
  • Ethereum price is looking to recapture $2,100 ETH bulls maintain caution amid a pause in the RSI recovery.  

Risk-on flows across the financial markets at the beginning of a new week have enabled the crypto board to preserve its weekend’s upbeat tone.

Buyers, however, show their reluctance as the dominantly traded digital assets reel from the turmoil experienced over the Terra LUNA’s disaster in recent weeks.

Bitcoin, the flagship cryptocurrency, faded its uptick towards the $31,000 mark while Ethereum struggles below $2,100. The no. 2 most widely traded coin fumbles after Justin Drake, an Ethereum researcher, warned over a potential delay in ETH merge difficulty bomb in August.

Drake said, "if there are no problems, then the Ethereum Merge will happen in August, but of course, there's always a risk of problems, there's also a risk of delays, and so September [2022] is possible, and October [2022] is maybe possible."

Meanwhile, DOGE bulls continue digesting comments from Dogecoin founder Jackson Palmer on Tesla Inc.’s CEO Elon Musk. Meanwhile, Palmer also claimed that he has not made a single buck from his creation.

Let’s see how Cardano, Dogecoin and Ethereum are positioned on the technical graphs.

ADA bulls are pressured by bears, will the rally sustain?

Cardano price is extending its bullish momentum into the third straight day on Monday, although bears are seen fighting for control over the last hours.

In doing so, ADA price is reversing its intraday gains while wavering in a narrow range so far. At the time of writing, ADA/USD is trading at $0.544, adding 0.55% on the day, having booked the seventh straight weekly loss in the previous week.

ADA price is sitting close to five-day highs of $0.556, although remains within last Wednesday’s trading range.

As observed on the daily chart, Cardano price is treading waters, unable to hold ground above $0.55, as the 14-day Relative Strength Index (RSI) has stalled its recovery, turning flat while below the midline.

This suggests that ADA bears could be making a comeback after three consecutive days of disappointment.

On selling resurgence, the immediate $0.50 support could be challenged, below which the downside will resume towards the 15-month lows of $0.384.

Although the $0.40 round figure could come to the rescue of ADA buyers before.

ada/usd daily chart

ADA/USD: Daily chart

On the flip side, if the ongoing three-day uptrend extends, then ADA bulls could aim for a test of the $0.62 strong resistance once again.

That level is the confluence of the bearish 21-Daily Moving Average (DMA), May 13 and 16 highs.

Daily closing above the latter is critical for ADA optimists to unleash the recovery momentum towards the downward-sloping 50-DMA, currently pegged at $0.803.

Related: Cardano (ADA) Price Predictions

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Dogecoin bulls await a fresh push to flex their muscles

DOGE price is trading at a critical juncture so far this Monday, which could determine a make-or-break moment for bulls.

Dogecoin price embarked upon a recovery mode from near $0.0810 levels mid last week but bulls now seem to lack the follow-through upside traction.

The canine-themed meme coin is up roughly 1% on the day, currently trading at $0.086, struggling to defend the uptrend seen over the weekend.

Dogecoin founder’s remarks on Elon Musk seem to have not gone down too well with the DOGE community, as reflected by the latest downside leg in the DeFi token.

Technically, Dogecoin price is challenging the 12-day-long descending trendline resistance at $0.087, awaiting a daily closing above the latter to confirm an upside break.

If the bullish breakout materializes, then DOGE bulls are likely to flex their muscles towards the next upside target located at $0.091. That price point is the 38.2% Fibonacci Retracement (Fibo) level of the recent decline from May 7 highs of $0.1323 to the yearly lows of $0.0654.

Acceptance above that hurdle will expose the May 13 high of $0.0959 once again. The next stop for DOGE bulls is envisioned at the 50% Fibo level of the same descent, placed at $0.0988.

doge/usd daily chart

DOGE/USD: Daily chart

Alternatively, rejection at the abovementioned trendline resistance will recall DOGE sellers, with the 23.6% Fibo level of $0.0812 back on their radars.

A sustained break below the said powerful support will kickstart a fresh downswing towards $0.070 and further south towards the yearly bottom.

The 14-day RSI is seen losing the gradual recovery momentum, justifying the pause in the DOGE coin rally.

Related: Dogecoin (DOGE) Price Predictions

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Ethereum price sense caution amid mild optimism

The bullish undertone experienced over the weekend is keeping Ethereum buyers somewhat motivated this Monday, as they try hard to retest the $2,100 barrier.

Ethereum price is adding onto the previous day’s gains, now trading at $2,056, up 0.75% on a daily basis. But sellers continue to lurk at higher levels, keeping the further upside elusive.

Despite the recent move higher, ETH price remains within last Wednesday’s trading range and needs a sustained move above $2,100 for bulls to accelerate control.

From a short-term technical perspective, the positive RSI-price divergence saved the day for ETH bulls in the previous week.

Although they continue to remain cautious, as the 50 and 100-DMA bear cross remains in play.

Therefore, ETH buyers could face a hard time to extend the upside towards the bearish 21-DMA at $2,251 even if the $2,100 hurdle is taken out decisively.

Further up, ETH bulls could attempt the next relevant hurdle around the $2,450-$2,460 region, which is the intersection of the May 10 and May 11 highs.

eth/usd daily chart

ETH/USD: Daily chart

On the downside, the $2,000 mark will act as a fierce support, below which the additional declines will get triggered towards the May 12 closing price of $1,953.

The last line of defense for ETH buyers is marked at the previous week’s low of $1,900.

To conclude, its not an easy tasks for buyers to retain control as investors have lost confidence in the crypto market after Terra LUNA’s debacle.

Related: Ethereum (ETH) Price Predictions

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