Top 3 Cryptocurrencies To Watch This Week, SHIB, DOGE, MATIC: Musk Saves DOGE Bulls But For How Long?

Last Updated April 25th 2022
5 Min Read
  • Shiba Inu finds buyers once again at the critical daily support line. Is it a dead cat bounce? 
  • Dogecoin price stages a V-shaped recovery on reports that Twitter will accept Musk's takeover offer.
  • Polygon price eyes a falling wedge breakdown following a downside break on the daily RSI.

The bearish tone in the crypto market remains unabated, as the previous week’s downtrend extends, causing a bloodbath at the start of a new week. 

The notable US dollar demand amid broad risk aversion remains a major headwind for the digital assets space. Risk sentiment remains sour as markets fret over the negative implications of an increasingly hawkish Fed on the American tech sector, eventually on the US economic performance. Beijing lockdown fears on covid resurgence also prompt investors to seek refuge in the safe-haven dollar. 

The altcoins track the weakness in the top crypto coins, with Bitcoin falling back below the $40,000 mark. Dogecoin, however, is bucking the broad descent, capitalizing on reports that Twitter will accept Elon Musk's takeover offer at $54.20 per share. 

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

Shiba Inu Price Rebounds But Not Out Of The Woods Yet

Shibu Inu price is enjoying good two-way business so far this Monday, keeping the bearish momentum intact for the sixth straight day. 

Over the last hours, SHIB price has staged a solid turnaround from two-week lows of $0.0000223 but bulls are struggling for a follow-through upside bias amid a selling wave seen within the crypto market.  

Shiba Inu price may be piggy-backing the sudden uptick in its canine-themed rival, Dogecoin. The coin, however, still remains in the woods on account of a bearish technical setup on the daily chart. 

Shiba Inu remains roughly 1.50% lower on the day, as of writing, having bounced off sharply the two-month-old rising trendline support at $0.0000221.

Despite the swift recovery, the horizontal 50-Daily Moving Average (DMA) at $0.0000244 continues to remain a tough nut to crack for SHIB bulls.

The 14-day Relative Strength Index (RSI) is pointing south below the midline, suggesting that the further downside remains on the table. 

Adding credence to the downside bias, a bear cross remains in play, which is represented by the 21-DMA having pierced the 100-DMA from above.

Therefore, if SHIB bears fight back control, then the rebound could fizzle out, reopening the downside towards the abovementioned key support. 

A sustained breach of the latter will expose a powerful demand area around $0.0000210, where the March 13 low and February 24 low align. 

SHIB/USDT daily chart 042522

SHIB/USDT: Daily chart

If SHIB bulls manage to crack the 50-DMA resistance, then the additional recovery could see a test of $0.0000250, the meeting point of the 21 and 100-DMAs.  

The previous week’s high at $0.0000258 could be next on SHIB buyers’ radars should the recovery momentum gain legs. 

Related: Shiba Inu (SHIB) Price Prediction

Dogecoin Price: 21-DMA Caps The Bullish Reversal 

Dogecoin price has been on a wild ride on the first day of the week, although regaining the positive territory after a 5.50% loss booked in the previous week. 

DOGE price has reversed half the previous week’s decline, courtesy of the encouraging news, as technical indicators continue to favor bearish traders.  

Monday’s upturn in DOGE price saw the canine-themed meme coin snapping a five-day downtrend, currently gaining 4.32% on the day. The coin is trading at $0.1380, having briefly recaptured the $0.14 level while well off the five-week lows of $0.1225.

From a short-term technical perspective, Dogecoin price breached the mildly bullish 50-DMA at $0.1333 on a daily closing basis on Sunday. This paved the way for a further selling spiral, as the dog-faced coin plunged to the lowest level since March 23, earlier on. 

In doing so, the coin took out the March 24 and March 25 lows near $0.1280. DOGE bulls, however, found some demand just above $0.1200, helping the price to stage a sharp recovery. 

The renewed upside prompted DOGE price to recapture the 50 and 100-DMAs support now turned resistance.

The 21-DMA barrier at $0.1420 came to the rescue of DOGE bears, stalling the rebound. 

Resurgent buying in Dogecoin price could yield a decisive break above the latter, which could make a retest of the $0.1500 level inevitable. 

DOGE/USD daily chart 042522

DOGE/USD: Daily chart 

With the 14-day RSI, however, still below the midline despite the uptick, DOGE bears remain hopeful. 

If the recovery momentum vapors out, then the downside could resume towards the 50-DMA once again. 

The second straight day of closing below the 50-DMA will provide extra credence to the ongoing downtrend, with the end-March low at risk once again. Further south, the March 20 low at $0.1172 will come into play.

Related: Dogecoin Price Prediction

Polygon Price Defends The Key Support But Not For Long

Polygon price is on a downslide ever since bulls faced strong rejection at $1.50 neighborhood and gave into the bearish pressures. 

The latest decline has dragged MATIC price to reach the lowest level in over two months at $1.263. Buyers, however, managed to some demand over the last hours. 

This has enabled MATIC price to make a minor recovery attempt to now trade at $1.304, still down 3% on a daily basis. The altcoin is back in the red this Monday after booking mild gains in the previous week. 

Polygon’s daily technical chart shows that MATIC price is teasing a downside break of a five-week-old falling wedge support at $1.291. 

Daily closing below the latter is needed to validate the breakdown, which could defy the formation’s bullish natural tendency.

Subsequently, a meltdown in MATIC price towards October 2021 levels of $1.20 cannot be ruled out. 

Ahead of that, the February 24 low of $1.246 could offer some resistance to MATIC sellers. 

The bearish breakdown in the daily RSI also points to deeper declines in MATIC price. 

MATIC/USD daily chart 042522

MATIC/USD: Daily chart

Alternatively, any recovery attempts could meet the initial supply at the daily highs of $1.346, above which the $1.40 round level could be challenged. 

 Should the buyers retain control, thereon, the downward-sloping 21-DMA at $1.413 will test the bearish commitments on the road to recovery. 

All in all, the path of least resistance appears to the downside for MATIC price in the near term. 

Related: Polygon (MATIC) Price Prediction