- Elon Musk’s comments breathe life into Dogecoin bulls after the recent sell-off from near $0.20.
- Cardano price looks to rebound from 21-DMA but an impending bear cross warrants caution for bulls.
- Decentraland price is defending the critical daily support line, an upswing in the making?
Bulls are dominating ahead of the yearly close, with the flagship cryptocurrency, Bitcoin, jumping back towards the $50,000 mark.
Despite thin year-end liquidity conditions, markets are witnessing an influx of exchange flows into Bitcoin and Ethereum. The market optimism is translating across the crypto board, benefiting the altcoins as well.
The interest in Dogecoin has resurfaced after Tesla Inc.’s CEO Elon Musk said that he believes Dogecoin is fundamentally better than any other cryptocurrency. He went on to add that Dogecoin would eventually become the official currency of Mars.
Musk said: “I think Mars itself will need to have a different currency... I don't know if Mars would have a cryptocurrency as a thing, but probably it seems likely, but it would be kind of a localized thing on Mars.”
Meanwhile, Decentraland price is rebounding, in anticipation of Metaverse Fashion Week plans. The network will be hosting the first-ever metaverse fashion show on its platform in March 2022.
Let’s see how are these three trending DeFi tokens positioned on the technical graphs.
Dogecoin price rebounds to test strong resistance near $0.178
Dogecoin price is looking to trade the final few days of the year on a positive footing, reversing a part of Wednesday’s decline.
In doing so, DOGE bulls are snapping a four-day downtrend, witnessing a recovery from weekly lows of $0.165 reached a day ago.
The sentiment across the crypto market appears to have turned in favour of bulls once again, aiding the turnaround in DOGE price.
However, it remains to be seen if DOGE bulls can sustain the rebound, as the road to recovery faces an immediate hurdle around $0.178, which is the confluence of the horizontal 21-Daily Moving Average (DMA) and symmetrical triangle support-turned-resistance.
Note that DOGE price confirmed a symmetrical triangle breakdown on the daily sticks on Wednesday after the downtrend from Christmas Eve peak of $0.199 gathered steam over the past four trading days.
With the bearish breakdown, the downside opens up towards the pattern target measured at $0.177.
Ahead of that the December 4 flash crash low of $0.125 will offer some support to DOGE bulls. Also, the $1 mark could be a tough nut to crack for the bearish traders.
DOGE/USD: Daily chart
Meanwhile, the 14-day Relative Strength Index (RSI) is seeing a sharp uptick towards the midline, recovering from lower levels. The leading indicator, therefore, suggests that the recovery could have legs going forward.
Acceptance above the aforesaid confluence supply zone, a rally towards the triangle resistance at $0.192 will be inevitable.
The recent range highs just below the $0.20 threshold will then emerge as fierce upside fencing.
Cardano price defends 21-DMA support, will the rebound sustain?
Cardano sellers take a breather this Thursday amid a profit-taking spree seen across the digital space, as year-end positions readjustments take place.
ADA price hit a fresh eight-day low of $1.28 before rebounding to $1.36 levels, where it now waver. ADA/USD is now adding over 2% on the day, although remains on track for a fourth straight monthly loss.
Technically, ADA bulls have entered a phase of consolidation so far this week after charting a falling wedge breakout on the daily time frame in the previous week.
For the extension of the bullish breakout, ADA price needs to find a strong foothold above the downward-sloping 50-DMA at $1.54 on a daily closing basis.
If that materializes, then a fresh buying wave could emerge, sweeping the rates through the December highs of $1.786, in order to challenge the robust hurdle at $1.85. That level is the intersection of the bearish 100-DMA and horizontal 200-DMA.
That said, the 100-DMA is on the verge of piercing the 200-DMA from above, flashing a bearish signal while threatening the nascent recovery attempt.
ADA bulls remain hopeful so long as the 21-DMA support at $1.32 is held. Also, the rebound in the daily RSI is helping stage a decent comeback in the digital asset.
ADA/USD: Daily chart
The so-called ‘Ethereum-killer’ could see a fresh downswing towards the horizontal trendline support of $1.13 on a decisive break below the 21-DMA.
The wedge resistance now turned support at $1.03 will be back on sellers’ radars. That area coincides with levels last seen in July this year.
Decentraland price stalls its downtrend as bulls fight back control
Despite MANA bulls jumping back into the game on Thursday, the bull-bear tug-of-war doesn’t seem to be over yet.
Decentraland price continues to waver in a narrow range, awaiting a fresh catalyst to pick up fresh steam. MANA price has stalled its three-day losing streak, having found strong bids near the $3.15 region.
From a short-term technical perspective, rising trendline support, connecting the November 10 and December 4 lows, at $3.14 is the last line of defense for MANA bulls.
If that support caves in on selling resurgence, then a free fall towards the upward-sloping 100-DMA at $2.51 will be very well in the books.
Further down, the bullish 200-DMA at $1.65 will be the next cushion for MANA optimists.
MANA/USD: Daily chart
However, if the renewed upside momentum gains additional traction above the 21-DMA resistance at $3.41, then MANA bulls would receive the much-needed boost to take on the horizontal 50-DMA barrier at $3.75 once again.
Up next, the December 27 highs of $4.06 will challenge the bearish commitments, as the recovery extends further. Fresh buying opportunities could likely emerge above the weekly highs, exposing the December month highs just shy of the $5 mark.
The daily RSI is closing in on the midline but remains below it, as of writing, keeping bullish traders cautious. Therefore, they refrain from placing any aggressive bets unless a decisive breakout is confirmed in either direction.
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