Top 3 Cryptocurrencies To Watch This Week, Shiba Inu, Cardano, Decentraland: SHIB Price Remains ‘Sell The Bounce’

Last Updated January 31st 2022
5 Min Read
  • Shiba Inu price is breaking lower towards three-month lows of $0.0000170, with bear cross in play.
  • Cardano price remains poised for a fresh downswing below $1.00 amid bear pennant confirmation. 
  • Decentraland price is teasing a falling wedge breakout on the 1D chart, focus on daily close. 

The crypto market is staging a modest recovery, although sellers continue to lurk, capping the granddaddy of cryptocurrencies, Bitcoin, below the $38,000 level. 

After a sluggish performance over the weekend, the No. 1 coin witnessed a steep drop in Monday’s Asian trading before rebounding in the second half of the day. 

Amid the market’s turnaround, Ethereum is also benefiting, testing daily highs near $2,600. Among the altcoins, Shiba Inu is also reversing losses but the canine-themed coin remains vulnerable amid bearish technicals. 

Also, the fact that retailers’ top meme coin picks such as Shiba Inu and Dogecoin are falling out of favor due to reduced institutional demand, SHIB bears are likely to retain control in the upcoming sessions. 

Cardano price also remains at a risk of additional declines, as the recent launch of the SundaeSwap decentralized trading exchange on Cardano has led to some concerns about its blockchain network's scalability.

Meanwhile, industry experts believe that Decentraland price could meet resistance on its path to the $2.70 target even as the coin celebrated the close of the Australian Open with a party in its metaverse. 

How are Shiba Inu, Cardano and Decentraland positioned on the technical charts? 

Shiba Inu’s daily technical setup favours bears

After a brief phase of directionless trading over the previous week, Shiba Inu bulls attempted a comeback on Saturday. 

Sellers, however, jumped back into the game on Sunday, making for a negative start to the week for Shiba traders this Monday. 

At the time of writing, SHIB price is trading just above $0.0000200, meandering near the lowest levels in four days.

SHIB bears remain focussed on the three-month troughs of $0.0000170, as the downside consolidative mode extends following the January 21 and 22 sell-offs. 

From a short-term technical perspective, nothing seems to have changed for the traders of the canine-theme coin, as the daily technical setup continues to paint a bearish picture. 

SHIB bears are gathering pace for the next leg lower, with a falling wedge breakdown in play on the said time frame. The natural tendency of the falling wedge formation is a breakout to the upside but SHIB bears defied the bullish odds-on January 21. 

The 14-day Relative Strength Index (RSI) is inching lower towards the oversold territory, justifying the renewed weakness in SHIB price.  

A bear cross confirmation, as the bearish 21-Daily Moving Average (DMA) pierced the ascending 200-DMA from above, adds credence to the downbeat outlook on the altcoin. 

Sellers eye a sustained break below the $0.0000200 level to unleash a fresh downswing towards the multi-month troughs of $0.0000170. 

The $0.0000150 psychological barrier will be the next downside target should the selling pressure intensify. 

SHIB/USDT: Daily chart

SHIB/USD daily chart 013122

On the upside, SHIB bulls will face an uphill battle to scale the wedge support-turned-resistance, now at $0.0000229.

Daily closing above the latter is needed to extend the recovery momentum towards the confluence of the 21 and 200-DMAs at around $0.0000251.

Buying resurgence above that key hurdle will open doors towards the downward-sloping 50-DMA at $0.0000296.

Check Out: Shiba Inu (SHIB) Price Prediction for 2025 and 2030

Cardano price eyes deeper losses as selling bias remains unabated

Cardano price has been trading back and forth in a familiar range above the $1 mark over the past week, with every attempt to the upside sold-off near the $1.15 region. 

In Monday’s trading so far, ADA price is extending the previous decline, as traders ignore the broad rebound seen across the crypto board. 

The so-called ‘Ethereum-killer is currently losing about 1.25% on the day, defending the $1 threshold but bears remain poised to break the latter going forward. 

As observed on the daily sticks, ADA price has charted a bear pennant breakdown after it broke the consolidation to the downside. The side-trend in the altcoin followed the steep sell-off seen in the week of January 17. 

The gradual pace of decline in the daily RSI also suggests that the renewed downside in ADA price will likely have legs. 

The bear pennant points to another downtrend towards $0.50 – the psychological level. However, the lowest levels since April 2021 at $0.917 will be on ADA sellers’ radars first.

The round level of $0.80 will also challenge the bullish commitment on its way south. 

ADA/USD: Daily chart

ADA/USD daily chart 013122

Alternatively, the bear pennant support-turned-resistance at $1.055 will cap the immediate upside should ADA bulls try their luck.   

Acceptance above the latter will expose the falling trendline resistance at $1.075. The next relevant bullish target is envisioned at the round level of $1.10.

The January 26 highs of $1.158 will be the level to beat for Cardano optimists. 

Don't Miss: Is Cardano (ADA) Safe?

MANA bulls need to crack this key level for the additional upside

Decentraland price is on a week-long recovery rally from three-month lows of $1.714, as buyers refuse to give up on the token. 

Having booked an 18.28% weekly gain, MANA price has started out a fresh week with a 2.78% advance, flirting with fresh 11-day highs of $2.626.

Bargain hunting seems to have boded well for the DeFi token, as MANA bulls found solid support near the $2 level. 

Looking at MANA’s daily chart, ‘dip-buying’ has helped stage a solid reversal from the critical horizontal 200-DMA support, now pegged at $1.968.

In doing so, the bulls are eyeing an upside breakout from the two-month-old falling wedge formation. 

The MANA recovery rally needs a daily closing above the falling trendline resistance at $2.558 to confirm a bullish wedge. At that level, the bearish 21-DMA coincides. 

Buying resurgence above the latter will trigger a fresh upswing towards the descending 50-DMA at $2.99. 

MANA/USD: Daily chart 

MANA/USD daily chart 013122

The 14-day RSI is pointing north but still remains below the midline, keeping ADA sellers hopeful. 

Rejection at the wedge hurdle will recall MANA sellers, putting the daily lows of $2.36 back to test. 

The further downside will then open up towards the abovementioned 200-DMA cap, below which a test of the wedge support at $1.471 will be inevitable. 

All in all, MANA price is seen at a critical juncture on the daily structure, with all eyes on Monday’s daily closing. 

Read Also: Decentraland Price Prediction – Will MANA Rise in Value?