Top 3 Cryptocurrencies To Watch This Week, Dogecoin, Shiba Inu, Cardano: DOGE Bulls Eye $0.20 Above This Key Hurdle   

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Last Updated January 20th 2022
5 Min Read
  • Dogecoin sellers take a breather but road to recovery is likely to face a wall of resistances. 
  • Shiba Inu price snaps a four-day downtrend, as bulls gear up to test the bearish 21-DMA resistance.
  • Cardano price needs to defend the 50-DMA support to keep the bullish trend alive and kicking. 

The crypto market is witnessing a relief rally on Thursday, with industry exports opining that a near-term bottom could be in place. 

Bitcoin, the pioneer cryptocurrency, has defended the $41,000 level once again, prompting a bounce towards the $45,000 barrier. Ethereum is flirting with the daily highs above $3,200 while Ripple price is closing in on the $0.76 level. 

The crypto market is licking its wounds from a raft of regulatory concerns that cropped up over the last two trading days worldwide and threw the digital assets under the bus. 

Dogecoin appears most promising amongst other altcoins, including Shiba Inu and Cardano, in the face of a tweet by Tesla CEO Elon Musk. Musk tweeted out a popular cryptocurrency meme inspired by Interstellar, Christopher Nolan’s epic science fiction film.

Meanwhile, ADA price is cheering the news that the Pavia metaverse platform and its native in-game currency are built upon the Cardano blockchain.

Here you have the technical outlooks on Dogecoin, Shiba Inu and Cardano. 

Dogecoin bulls yearn for acceptance above 21-DMA  

Dogecoin price is seeing the first green candle in five consecutive trading days on Thursday, with traders hoping to enter the weekend on an upbeat note. 

In doing so, DOGE price is making a recovery attempt from five-day lows of $0.158 reached a day before. 

DOGE buyers, however, are poised for an uphill battle, as multiple healthy resistance levels are stacked up, which could keep the correction from a monthly peak of $0.215 well in place. 

Looking at the canine-inspired meme coin on a daily technical graph, the renewed upside appears safeguarded by the mildly bullish 21-Daily Moving Average (DMA) at $0.166. At that level, the daily highs coincide. 

Should the recovery momentum accelerate, then DOGE bulls will look to take charge above the latter, calling for a retest of the descending 50-DMA at $0.173.

Further up, January 15 highs of $0.195 could lure Dogecoin’s optimists, bringing the monthly highs back in sight. 

The latest uptick in the 14-day Relative Strength Index (RSI) seemingly justifies the rebound in DOGE price but bulls could stay cautious until the 21-DMA is scaled.    

DOGE/USD: Daily chart 

DOGE/USD daily chart 012022

That said, a rejection at the 21-DMA could reinforce the selling interest, prompting the resumption of the correction. 

Sellers will then set their eyes on the bullish wedge resistance now support at $0.149, below which the January 11 lows at $0.140 will be probed. 

From a broad perspective, Dogecoin remains in an uptrend after confirming an upside breakout from a falling wedge last Thursday. 

Therefore, any pullback in price could be seen as a good buying opportunity. 

Don't Miss: 3 Reasons To Buy Dogecoin, And 1 Reason To Sell

Shiba Inu price follows RSI higher, will the rebound last? 

Having found buyers once again near the $0.0000271 region, SHIB price is snapping its four-day losing streak so far this Thursday.

Shiba Inu price is reversing the previous decline, currently trading around $0.0000280, higher by 2.53% on the day. 

The latest leg higher in SHIB price lifts the coin from the lowest levels seen in eight days, as the upswing appears to hold momentum amid a relief rally seen across the crypto board. 

From a short-term technical perspective, SHIB buyers are looking to recapture the downward-sloping 21-DMA at $0.000030, which also happens to be a round figure.

On successfully taking out that level, SHIB bulls will be re-energized, driving the price higher to challenge strong resistance around $0.0000335.

The upper boundary of a potential falling wedge formation and descending 50-DMA close in on that level. 

A daily closing above the key resistance will validate the bullish wedge, fuelling a fresh rally towards the horizontal 100-DMA at $0.0000401.

SHIB/USDT: Daily chart

SHIB/USD daily chart 012022

However, the 21-DMA could be a tough nut to crack for SHIB bulls, as the 14-day Relative Strength Index (RSI) remains below the 50.00 level, despite the latest move northwards. 

Failed attempts to break through the 21-DMA hurdle will revive the recent bearish momentum towards $0.0000244, which is the confluence of the bullish 200-DMA and wedge lower boundary. 

A sustained move below that cushion could trigger a massive sell-off towards the $0.000020 round level, leaving little hope for SHIB buyers.

Read Also: Will 2022 Be A Better Year For Shiba Inu?

Cardano price stalls correction at 21-DMA, what’s next? 

Cardano price is rebounding from a key demand area this Thursday, having stalled a two-day corrective decline from seven-week highs of $1.638, reached on Tuesday. 

Amidst the recovery, ADA price is gaining 4.20% on the day, reverting to the $1.40 price level, as bulls take cues from the underlying crypto market optimism. 

ADA price is rebounding from four-day troughs of $1.317, as buyers remain committed to recapturing the $1.50 psychological level. 

In doing so, bulls have reversed almost half the previous decline, with the next relevant resistance aimed at the wedge topside hurdle of $1.498. 

Note that the so-called ‘Ethereum-killer’ confirmed a falling wedge breakout on Monday, keeping any downside as only corrective. 

Acceptance above the $1.50 supply zone on a daily closing basis, will redirect the focus on the $1.60 round number, opening doors for the additional gains towards the multi-week top. The bearish 100-DMA is located at that level, making it a stiff upside barrier.  

The daily RSI is looking north while holding comfortably above the midline, providing legs to the ongoing rebound in the price. 

ADA/USD: Daily chart

ADA/USD daily chart 012022

On the flip side, the immediate support is pegged at the mildly downbeat 50-DMA at $1.338. 

The next stop for ADA bears is envisioned at the horizontal 21-DMA at $1.305. A fresh downswing will kick in on a firm break below the latter, exposing the recent range lows near $1.22. 

The wedge support at $1.06 will be the line in the sand for ADA’s bullish traders. 

Check Out: What Will Cardano Be Worth In Five Years?