Top 3 Cryptocurrencies To Watch This Week, Shiba Inu, Cardano, Dogecoin: ADA Bulls Primed For A Big Breakout  

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Last Updated January 17th 2022
5 Min Read
  • 21-DMA continues to remain a tough nut to crack for Shiba Inu bulls, with eyes once again on $0.0000260.
  • Cardano price breaking higher from a bullish wedge formation on the 1D chart, focus on daily close.  
  • Dogecoin price reverses Friday’s massive surge, as sellers regain control in a new week.

With the leading cryptocurrencies taking a back seat stepping into a brand-new week, altcoins are all things shine, although the same cannot be said for the canine-themed coins. 

Having faced rejection just above the $44,000 level recently, industry experts predict a potential pullback towards $40,000.

Despite the underlying bearish tone around Bitcoin, Ethereum, Shiba Inu and Dogecoin, a survey report from Seychelles-based cryptocurrency exchange Huobi showed that these coins rank among the top cryptocurrencies in 2021.

Meanwhile, Cardano remains in the spotlight amid a mixed to sluggish performance seen across the crypto market so far. The rally in Cardano price is fuelled by the news that “SundaeSwap will launch a fully-functional beta decentralized exchange (DEX),” the project's developers confirmed in a blog post on Sunday. 

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

Shiba Inu price turns south in tandem with RSI  

Having faced rejection just under $0.0000330 in the second half of the previous week, Shiba Inu price is on a steady decline starting out a fresh week on the negative footing.

The canine-themed meme coin is accelerating Sunday’s losses, as bulls lose the $0.000030 handle once again, shedding over 4% on a daily basis. 

In doing so, the altcoin is heading back towards the critical support area near the $0.0000260, where the price found a solid footing the week before.  

On the daily chart, SHIB price stalled its rebound, now extending southwards after facing stiff resistance at the bearish 21-Daily Moving Average (DMA) at $0.0000311 over the past six trading days. 

SHIB bulls need acceptance above the latter to revive the recovery from three-month troughs of $0.0000254.

Further up, powerful resistance at $0.0000350, the confluence of the downward-sloping 50-DMA and upper boundary of a falling wedge pattern. 

Note that Shiba Inu has been travelling within a bullish wedge since December 3. An upside breakout from a falling wedge will get confirmed on a daily closing above the aforesaid key hurdle.

A fresh rally towards the horizontal 100-DMA at $0.000040 will be in the books should the bulls yield a falling wedge confirmation on a daily closing basis. 

SHIB/USDT: Daily chart

SHIB/USD daily chart 011722

However, the upside appears a far cry for now, as the 14-day Relative Strength Index (RSI) is witnessing a gradual downtick, having faced strong offers just below the central line.   

Rejection at the 21-DMA calls for an extended decline towards the (wedge) support, now at $0.0000255, where the ascending 200-DMA aligns.  

The latter is the line in the sand for SHIB optimists, as a downside break could trigger a meltdown towards the $0.000020 round level.

Check Out: Shiba Inu Price Predictions: Where Will The Pupcoin Go Next?

Cardano buyers aim for 100-DMA hurdle as ADA price breaks higher 

Cardano snapped the last week’s upside consolidative mode and broke firmly higher on Sunday, backed by the encouraging fundamental news. 

So far this Monday, ADA price has extended the previous gains, now up roughly 9% on the day, as it clocked a fresh three-week high of $1.575 in the last hours. 

The renewed upswing suggests that the recovery from six-month lows of $1.071 has regained momentum.

Technically, Cardano price is on track to chart a falling wedge breakout on a daily descending trendline resistance at $1.515.

If the wedge breakout materializes, then ADA price will seek a fresh advance for a test of the bearish 100-DMA barrier at $1.677. 

Fresh buying opportunities above the latter will open doors towards the horizontal 200-DMA at $1.822.

The additional upside will put the $2 mark back on ADA buyers’ radars. 

At the press time, ADA/USD is losing 0.84% on the day to trade at $1.302, reversing a spike above the horizontal 21-DMA barrier at $1.325, as bulls ran into the bearish 50-DMA cap at $1.367. 

The daily RSI is looking north, approaching the overbought region while comfortably sitting above the 50.00 level. The leading indicator, therefore, suggests that there is more room to rise for the so-called ‘Ethereum-killer’.

ADA/USD: Daily chart

ADA/USD daily chart 011722

On the flip side, Immediate support is now seen at the mildly downbeat 50-DMA, currently pegged at $1.35.

The 21-DMA cushion at $1.297 will then come to the rescue of ADA buyers. Follow-through selling interest will negate the recovery trend in the near term. 

To conclude, the path of least resistance appears to the upside for ADA bulls, as traders await Monday’s daily close for a clear directional bet. 

Don't Miss: Pros and Cons of Investing in Cardano

Dogecoin price reverts to the 21-DMA resistance-turned-support  

Dogecoin price is continuing its corrective decline for the fourth straight day this Monday, keeping the red after a down day on Sunday.

The tide seems to have turned in favor of DOGE bears after Elon Musk’s sponsored massive surge to monthly highs of $0.2173, reached last Friday.

DOGE price correctly sharply from one-month peaks after running into strong offers just above the horizontal 100-DMA at $0.213.

Coupled with Musk’s upbeat remarks, a descending triangle breakout on the daily sticks helped DOGE price to explode.

With the correction, DOGE bears broke the 50-DMA support at $0.176, now challenging the 21-DMA downside cap, located at $0.166.

The 14-day Relative Strength Index (RSI) has pierced through the midline from above, pointing to more pain in-store for the canine-inspired coin.             

The next relevant cushion is envisioned at the triangle resistance-turned-support at $0.156.                                                         

DOGE/USD: Daily chart 

DOGE/USD daily chart 011722

If DOGE price manages to defend the 21-DMA on a daily closing basis, then DOGE bulls could re-attempt the 50-DMA barrier.

Further recovery will pave the way towards Saturday’s top of $0.1983, above which the monthly high could test the bearish commitments once again. Note that the 100-DMA hangs around that level. 

The level to beat for DOGE bulls remains at the critical slightly bearish 200-DMA of $0.226.

Read Also: What Will Dogecoin Be Worth In 10 Years?