Top 3 Cryptocurrencies To Watch This Week, SHIB, APE, ADA: ApeCoin Dances To Musk’s Tune, Where Next?

Last Updated May 5th 2022
6 Min Read
  • Shiba Inu price resumes the downside towards $0.000020, as bulls give into the bearish pressures.
  • ApeCoin price dances to Elon Musk’s tune, APE bulls seem to lack the follow-through upside conviction.
  • Cardano price falls back below 21-DMA amid a bearish cross and RSI on the daily chart.

Thursday is a sea of red for the cryptocurrencies, as the big Fed Day-inspired buying fizzles out heading towards the end of the week trading.

The Fed turned in less hawkish than expected, dousing 75 bps June rate hike expectations, which triggered a sharp correction in the US dollar across the board. Risk sentiment rebounded firmly and helped Wall Street indices, as well as, the digital assets.

With the Fed-effect fading away, the greenback has regained its upbeat momentum, boding ill for the crypto world once again. Bitcoin is slipping towards $38,000 while Ethereum is testing the $2,800 level.

The altcoins are also feeling the heat of the renewed selling wave, with Cardano heavily battered, given its outperformance on Wednesday.

Amidst the renewed weakness across the crypto board, investors fail to capitalize on the encouraging news that the Italian luxury and fashion brand Gucci is ready to accept payment in ten cryptocurrencies and five stablecoins, including Shiba Inu.

Meanwhile, ApeCoin price remains at the mercy of the antics of Tesla Inc.’s CEO Elon Musk. APE price skyrocketed a day before after Musk changed his Twitter profile picture to a Bored Ape collage. Although the gains were mostly reversed this Thursday, thanks to a tweet by Musk, replying to Michael Bouhanna, VP for Digital Art at Sotheby’.

Bouhanna confirmed that the collage used by Musk belongs to auction house Sotheby’s and was made for its “Ape In!” NFT auction event last year. In response, Musk humorously responded with “I dunno … seems kinda fungible.”

Let’s see how Shiba Inu, ApeCoin and Cardano are positioned on the technical graphs.

Shiba Inu price: Bearish potential remains intact amid gloomy technical picture

Shiba Inu price is heading back towards the $0.000020 round figure after failing to find acceptance above the $0.0000220 mark so far this week.

In doing so, SHIB price is reversing a quarter of the previous impressive rebound, currently trading at $0.0000214. The coin is on course to book the third straight weekly loss.

The canine-themed meme coin has been trading up and down in an extremely tight range, having entered a phase of downside consolidation after reaching the lowest level in three months at $0.0000183 last Saturday.

As observed on the daily chart, SHIB bulls need a sustained break above the $0.0000220 level to cement the recovery from multi-month troughs.

The next significant upside hurdle is envisioned at $0.0000227, which is the three-week-old rising trendline support turned resistance.

Recapturing the latter will open doors for the further recovery gains, with the bearish 21-Daily Moving Average (DMA) at $0.0000233 on SHIB buyers’ radars.

shib/usd daily chart

SHIB/USDT: Daily chart

The 14-day Relative Strength Index (RSI), however, is pointing south below the central line, keeping the odds in favor of bearish traders.

Therefore, Thursday’s leg down could find an additional impetus, as the $0.000020 demand area appears at risk yet again.

SHIB bears will initiate another downside leg for a retest of the multi-month lows near $0.0000180.

If the selling momentum gathers steam, then SHIB price will target the level not seen since January 22 this year, at $0.0000170.

All in all, Shiba Inu’s path of least resistance appears to the downside.

Related: Shiba Inu (SHIB) Price Prediction

ApeCoin price: Has the search for a bottom ended?

ApeCoin price bottomed out at $13.85 on Tuesday after ending its three consecutive days of losses and reaching the lowest levels since April 22.

APE bulls found strong bids near the $14-mark, courtesy of Elon Musk, and rallied hard to recapture $17.50 on Wednesday. APE price, however, failed to sustain at higher levels and slipped to near $15.50 at the close.

One of the most trending crypto coins in recent times. ApeCoin, made attempts to build on the previous upsurge this Thursday, re-approaching the $17 threshold.

But sellers quickly jumped back, driving APE price back to the $15.50 neighborhood, as investors weigh in the latest Twitter antics by Musk.

From a short-term technical perspective, APE price remains exposed to downside risks. Bulls, however, have some hopes so long as the ApeCoin price manages to defend the ascending 50-Simple Moving Average (DMA) on the 12-hour chart.

Should APE buyers succeed the coin could resume the previous rebound to reclaim ground above the $16 level. Acceptance above the latter could trigger a fresh upswing towards the weekly highs of $17.64.

The next critical resistance for APE bulls appears at $18, the confluence of the psychological mark and the slightly bearish 21-SMA.  

apecoin daily chart

APEPERP: 12-hour chart

Alternatively, if the 50-SMA cap caves in, then APE sellers will flex their muscles, calling for a test of the rising trendline support at $14.30.

Nothing would stop APE bears to take on the April 20 low near $13 if the selling interests remain unabated.

Related: ApeCoin (APE) Price Prediction

Cardano price returns to the red despite the bullish wedge  

After enjoying massive gains on Wednesday, Cardano price extended the upside earlier this Thursday and hit fresh 12-day highs at $0.905.

ADA bulls, however, lost the upside conviction and surrendered to bears, eroding almost half the previous surge to trade at $0.842, as of writing.

The no.9 crypto coin led the broad rally in the crypto market a day before, which is likely going to make it snap the four-week losing streak.

Cardano’s daily technical setup offered the much-needed reprieve to ADA bulls on Wednesday after the price confirmed an upside breakout from a three-week-long falling wedge formation.

The bullish breakout above the critical falling trendline resistance at $0.818 triggered a massive bid wave, which prompted ADA buyers to storm through the downward-sloping 21-DMA at $0.876.

At the time of writing, ADA price has fallen back below the abovementioned critical resistance now turned support.

If the selling spiral extends, then a test of the wedge resistance now support at $0.807 will come into play.

Sustained weakness below the latter will expose Wednesday’s low of $0.768.

The 14-day RSI in inching lower while below 50.00, justifying the renewed downside in ADA price.

ada/usd daily chart

ADA/USD: Daily chart

On the flip side, ADA bulls need to seek a daily candlestick closing above the 21-DMA to extend the break higher towards the $0.90 supply zone.

Fresh buying opportunities will be created on a firm break above the latter, triggering a fresh leg northward for a test of $0.98, where the 50 and 100-DMAs converge.

Ahead of target, the convergence of the 21 and 100-DMAs at $99.33 will challenge the bearish.  

Related: Cardano (ADA) Price Prediction