Top 3 Cryptocurrencies To Watch This Week, SHIB, MANA, ADA: Downside Remains Favored For Shiba Inu

Last Updated April 7th 2022
6 Min Read
  • Shiba Inu price rebounds but not out of the woods yet amid rising wedge breakdown in play.
  • Decentraland price recovers in sync with the daily RSI but the technical setup remains in favor of bears.
  • Cardano price needs acceptance above 21-DMA to validate the recovery from two-week lows.  

After Wednesday’s bloodbath, the cryptocurrencies are breathing a sigh of relief, with a brief recovery mode seen across the board. Bitcoin, the flagship digital asset is stabilizing above the $43,000 mark. Ethereum is struggling near $3,200 while Ripple is advancing above $0.7700.

The hawkish Fed March meeting’s minutes, which signaled the balance sheet reduction and bigger rate hikes in the coming months, spooked the investors and triggered a tech sell-off on Wall Street. The meltdown in Nasdaq stocks dragged the digital token market down.

The sentiment around the digital space has somewhat improved, reflective of the minor pullback seen in the altcoins, including Shiba Inu, Decentraland and Cardano. Will the renewed upside last?

Let’s see how are these coins positioned on the technical graphs?  

Shiba Inu Price Beaks Lower After Sustained Rejection At Higher Levels

Shibu Inu price is making a minor recovery attempt this Thursday, recouping some of Wednesday’s steep losses amid a broad turnaround seen across the crypto board.

Wednesday’s slump saw the canine-themed crypto coin erase its late March rally to just shy of the $0.000030 threshold, six-week highs.

At the press time, Shiba Inu price is rebounding from two-week lows of $0.0000239 to recapture the $0.0000250 psychological mark. The coin is adding 1.85% on the day, having lost 9% of its value a day before.

As observed on the daily sticks, the recovery in Shiba Inu remains capped by the upward-sloping 21-Daily Moving Average (SMA) at $0.0000252.

A sustained break above the latter could offer the much-needed impetus to SHIB bulls, with the next upside target aligned near $0.0000260. That level is the confluence of the rising wedge support now resistance and the bearish 100-DMA.

Further up, Wednesday’s high of $0.0000268 will be the level to beat for SHIB buyers.

SHIB/USD daily chart

SHIB/USDT: Daily chart

That said, the downside remains compelling for the meme coin after SHIB price confirmed the bearish break from the rising wedge formation.

The 14-day Relative Strength Index (RSI) is seeing a fresh uptick, justifying the reversal in SHIB price northwards. The leading indicator, however, holds well below the midline, suggesting that the bearish bias remains well on the table.

If the intraday lows give way, then a fresh downswing towards the March 25 low of $0.0000235 will be inevitable. Bears will then keep their sight on the March 20 low of $0.0000225.

Related: Shiba Inu (SHIB) Price Prediction

Decentraland Price Remains A ‘Sell The Bounce’ Trade Around $2.48

Decentraland price is snapping a three-day losing streak, as bulls jump back into the game this Thursday.

Having faced rejection near the $2.75 region on several occasions, MANA sellers took over complete control earlier this week, smashing the price to $2.29, the lowest level since March 16.

Since then, MANA price has reversed a part of the previous declines to currently trade at $2.40, higher by roughly 3.50% so far.  A sense of calm seen across the crypto markets is also aiding the recovery in Decentraland price.

From a short-term technical perspective, the path of least resistance appears to the downside for MANA price, as the daily picture continues to appear gloomy for the optimists.

MANA price charted a downside breakout from a three-month-long symmetrical triangle pattern, following Wednesday’s close below the rising trendline support at $2.46.

Adding credence to the downbeat view, a death cross got confirmed a day before. This occurred after the downward-sloping 50-DMA pierced through the 200-DMA from above, flashing a bearish signal.

The 14-day RSI also keeps its range below the 50.00 level, despite the renewed upside.

Should the selling momentum regain traction, MANA price could meet the initial demand area at the mid-March lows of $2.32.

Failure to resist above the last will trigger a sharp sell-off towards the $2 round figure.  

MANA/USD daily chart

MANA/USD: Daily chart

Alternatively, recapturing the triangle support now turned resistance at $2.46 is critical to initiate any meaningful recovery.

The next upside target is pegged around $2.58, where the 21, 50 and 200-DMAs converge.

The intersection of the descending 100-DMA and the triangle resistance at $2.75 will be the level to beat for MANA bulls.

Related: Decentraland (MANA) Price Prediction

Cardano Price Sold Off Heavily After Bull Pennant Failure

Cardano price is attempting a bounce but seems to lack the follow-through upside, as sellers continue to lurk around the $1.10 mark.

In doing so, ADA price is licking its wounds after the two back-to-back days of losses. ADA bears propelled the price to hit two-week troughs at $1.039 before bulls came to the rescue.

The so-called ‘Ethereum-killer’ is holding the recovery gains at around $1.070, at the time of writing, up 1.61% on a daily basis while headed for a 10% weekly loss.  

Cardano’s daily technical chart turned bearish after a bull pennant formation confirmed on Monday was invalidated after the price gave a daily closing below the rising trendline support of $1.176 a day later.

That resulted in a massive sell-off on Wednesday, with ADA price breaking through the critical 100-DMA and 21-DMA support levels. That day itself, the 100-DMA cut the 21-DMA for the downside, charting a bear cross, offering fresh legs to the downward spiral.

The upturn seen in ADA price is seen as a good selling opportunity, as the bearish odds remain intact, despite the daily RSI recapturing the midline.

Daily closing above the bullish 21-DMA at $1.091 is needed to take on the recovery towards Wednesday’s high of $1.173.

ADA/USD daily chart

ADA/USD: Daily chart

On the flip side, sellers are likely to remain hopeful so long as ADA price remains below the 100-DMA at $1.079.

The next support awaits at the horizontal 50-DMA support of $0.964, which will be a line in the sand for ADA buyers.

Related: Cardano (ADA) Price Prediction