Top 3 Cryptocurrencies To Watch This Week, Shiba Inu, Decentraland, Cardano: SHIB Bears Contemplate Next Move

Last Updated February 3rd 2022
5 Min Read
  • Shiba Inu price is attempting a comeback amid encouraging fundamental news but technicals still point south. 
  • Decentraland price is supported at critical level after the bullish wedge confirmation on the daily chart.  
  • Cardano price rebounds but not out of the woods yet amid a pennant breakdown on the 1D chart.  

The crypto market is a mixed bag this Thursday, with the most dominantly traded digital assets in Bitcoin, Ethereum and Ripple down around 0.55% to 2.50% on the day. 

The negative sentiment across the crypto board could be attributed to the earnings of Meta roiled markets and dragged the tech-heavy NASDAQ index down over 2% on Wednesday. 

Meanwhile, hawkish decisions announced by the Bank of England (BOE) and European Central Bank (ECB) also added to the concerns over aggressive global tightening, weighing on the risk-sensitive assets. 

Although the dour mood, altcoins are seeing a glimmer of hope. Cardano price is benefitting from the news that its network’s capacity would increase to 80KB with the update from developers at Input Output Hong Kong. 

Meanwhile, Decentraland price remains well-positioned for an upswing amid a favorable technicals. 

The canine-themed coin, Shiba Inu, announced a new partnership with Welly’s blockchain-based fast-food chain in Naples, Italy, which will take it to the realm of real-world projects. This partnership news could help put some life in SHIB price. 

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

Shiba Inu: Risks remain skewed to the downside in the near term

Shiba Inu price is licking its wounds so far this Thursday, following a steep drop to test $0.0000200 seen on Wednesday.

A bull-bear tug-of-war extends just above the $0.0000200 mark, as the downside consolidative phase for SHIB price prolongs into a twelfth straight trading day. 

Such a price action only suggests that bears are building momentum to execute a massive downside move. 

Although SHIB bulls come up for the last dance before a fresh downswing kicks in, which would break the consolidative stint firmly. 

From a short-term technical perspective, the daily chart continues to point at a potential downslide, although a minor uptick in the 14-day Relative Strength Index (RSI) from lower levels suggests that a brief pullback cannot be ruled.

Sellers could see a likely rebound in SHIB price as a good position to enter short trades, which propel the rates back towards the January 22 troughs at $0.0000170.

Ahead of that level, the January 24 lows at $0.0000186 could offer some reprieve to SHIB bulls.  

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

Note that the price is consolidating the falling wedge breakdown confirmed on January 21. Although the natural tendency of the falling wedge formation is a breakout to the upside, SHIB bears defied the bullish odds. 

Justifying the bearish view, a bear cross remains in play, especially after the bearish 21-Daily Moving Average (DMA) pierced the ascending 200-DMA from above earlier this week. 

SHIB/USDT: Daily chart

SHIB/USD daily chart 020322

Alternatively, the wedge support-turned-resistance, now at $0.0000226, will be a tough nut to crack for buyers. 

Acceptance above the latter is needed to extend the renewed upside towards the downward-sloping 21-DMA at $0.0000238.

The next line of defense for sellers is seen at the upward-sloping 200-DMA at $0.0000253.

Don't Miss: Why Shiba Inu Is One Of The Cheapest Cryptocurrencies

MANA bulls preparing for a retest of 50-DMA

Decentraland price has turned positive for the first time in three days, despite the mixed performance seen across the crypto market.

MANA price is adding 2.74% on the day, currently trading at $2.608, having found strong buyers near the $2.40 region over the past 48 hours. 

Bulls are set to resume the previous week’s relief rally from multi-week lows of $1.1714, as a test of the $3 threshold appears inevitable, courtesy of a bullish technical formation on the daily sticks. 

Looking at MANA’s daily chart, bulls remain alive and kicking after an upside breakout from the two-month-old falling wedge formation on Monday.

The MANA recovery rally cut through the falling trendline resistance, then at $2.558, on a daily closing basis and confirmed a bullish wedge. That level was the intersection of the short-term critical descending 21-DMA. 

But the recent retracement from just shy of the $3 level has tested the abovementioned critical confluence resistance now turned support, currently pegged at $2.497.

If the latter holds, then a rebound towards the $3 round level cannot be ruled out, which will emerge as a powerful upside barrier, as the 50-DMA aligns there.  

The 14-day RSI is pointing north, looking to break above the midline, adding credence to a potential upside.  

MANA/USD: Daily chart 

MANA/USD daily chart 020322

Failure to defend the $2.497 demand area will call for a resumption of this week’s correction. 

Sellers will then target the rising 200-DMA support at $2.00, below which a test of the wedge support at $1.400 will be in the books. 

To conclude, MANA price looks north so long as it holds above the $2.50 threshold. 

Read Also: Is Decentraland a Good Investment And Should I Invest in MANA?

Cardano price keeps sellers hopeful amid bearish technical setup

Cardano price is posting small gains on the day, attempting to make a comeback after Wednesday’s sell-off. 

The recent decline in ADA price snapped the previous rebound from near the critical support at the $1 level. 

The altcoin is barely up 0.80% so far, as bulls continue defending the latter amid a mixed market sentiment while fundamentals remain supportive of the renewed uptick.

As observed on the daily sticks, the so-called ‘Ethereum-killer yielded a pennant breakdown on Wednesday after closing the day below the rising trendline support, then at $1.036. Now that cap is located at $1.047.

The steady rise in the daily RSI backs the recovery attempt but ADA bulls remain cautious, as the leading indicator continues to hold below the midline.  

The pennant breakdown targets the lowest levels since April 2021 at $0.917, opening floors towards the round level of $0.80.

Going forward, a likelihood for another downtrend towards $0.50 – the psychological level cannot be dismissed. 

ADA/USD: Daily chart

ADA/USD daily chart 020322

On the other hand, the immediate rebound appears capped at the pennant support-turned-resistance of $1.047, as bulls look to flex their muscles.   

If bulls manage to find a strong foothold above the latter, then the renewed upswing will see ADA price eyeing the pennant resistance at $1.093.

Further north, the relevant target is seen at the round level of $1.10. The January 26 highs of $1.158 will be next on the bulls’ radars.

Check Out: Cardano Price Prediction Forecast