- Defending $0.0000264 support is crucial for Shiba Inu price on the daily sticks amid bearish RSI.
- Cardano price could retest January 8 lows before staging a solid comeback towards $1.25.
- Dogecoin price is testing the bullish commitments at a critical daily support line, buy the dips?
The start of 2022 doesn’t seem to be in favor of crypto bulls, as a sea of red prevails heading into the second trading week of this year.
Bitcoin, the pioneer cryptocurrency, remains in the hands of sellers, having charted a death cross on the daily sticks, with the $40,000 level giving way once again.
Adding to the damp mood, industry experts suggest that the crypto bulls market is over, as social trends confirm that cryptocurrencies have officially entered a bear market.
“Our social trends data confirms that the trading crowd feels very much as though #crypto is in an official #bearmarket. Mid-May was the last time #bearish sentiment was this prevalent, which is a very promising sign that weak hands are capitulating,” crypto intelligence platform Santiment tweeted out earlier this Monday.
Tracking the most widely traded digital assets, altcoins have also turned vulnerable, with Shiba Inu, Dogecoin and Cardano teasing downside breakouts on the technical graphs.
Here’s all you need to know about these three DeFi tokens.
Shiba Inu bulls set to defy the bearish structure on the daily chart
Shiba Inu price resumes the ongoing downtrend this Monday, following a temporary pullback seen on Sunday.
Bears took a breather on Sunday before flexing their muscles once again, as SHIB price looks to retest the January 8 trough of $0.0000264, which marked the lowest level in nearly three months.
After a brief consolidative stint towards the year-end, the canine-inspired coin kicked off the first trading day of 2022 on the right putting. SHIB bulls, however, gave into the bearish pressures seen across the crypto board, losing 17% in the first trading week of this year.
From a short-term technical perspective, Shiba Inu is testing the lower bound of a month-long falling wedge formation.
The bearish wedge will come into play should SHIB price yield a daily closing below the falling trendline support at $0.0000261. That area coincides with the January 8 lows, making it strong support.
On a downside breakout, sellers will march towards the upward-sloping 200-Daily Moving Average (DMA) at $0.0000234.
A breach of the abovementioned critical support will open floors for a test of the $0.000020 round level.
The 14-day Relative Strength Index (RSI) is pointing south, heading towards the oversold region, suggesting that the price has some room to fall before it attempts a comeback amid bargain hunting.
SHIB/USDT: Daily chart
If the aforesaid strong support holds up, SHIB bulls could fight back control, prepping up for a rebound towards the $0.000030 mark.
Fresh buying opportunities will arise above the latter, calling for an extended recovery towards the mildly bearish 21-DMA at $0.0000334.
Further up, powerful resistance emerges around $0.0000360, where the descending 50-DMA and wedge resistance coincide.
Check Out: Shiba Inu Price Predictions
Cardano price remains exposed to downside risks in the immediate term
Cardano is extending its run of losses into the fourth straight trading day on Monday, with sellers targeting the January 8 low of $1.07 on further declines.
The downbeat sentiment around ADA price remains unabated, as ADA bears track the weakness across the crypto space.
In doing so, ADA price is losing roughly 4.50% on the day, currently trading at 1.12, although remains within January 8 - Saturday’s range.
Technically, ADA bears remain poised to challenge Saturday’s trough, backed by the daily RSI inching lower towards the 30.00 level.
Descending trendline support converges at $1.07, which will offer a tough time to ADA bears.
Note that Cardano price is extending the downside break from a symmetrical triangle breakdown confirmed last Friday.
A daily closing below $1.07 will pave the way for a fresh sell-off towards the July low of $1.00, below which doorways will open up towards hell.
ADA/USD: Daily chart
The so-called ‘Ethereum-killer’ needs to defend the abovementioned crucial support for bulls to even attempt a comeback.
Initial recovery could face an immediate upside barrier at the triangle support-turned-resistance at $1.25.
The next significant resistance is seen at the horizontal 21-DMA at $1.33. If ADA buyers manage to scale through the latter, then the 50-DMA at $1.39 will likely challenge the bullish commitments.
All in all, the path of least resistance appears to the downside in the immediate term, which could emerge as a point of inflection for ADA’s market participants.
Don't Miss: Is Cardano A Good Buy Or Goodbye
Dogecoin price at a critical juncture, rebound likely?
Dogecoin price is keeping its downbeat momentum intact, as the underlying bearish tone remains intact after peaking out just shy of $0.18 on December 31.
Ever since, DOGE price has remained in a consolidative mode, breaking to the downside in the previous week.
DOGE bears tested the critical support near $0.145 on multiple occasions over the past seven trading days, currently breaking through the latter amid notable downside pressure.
If DOGE price closes Monday below the support line, it will validate a descending triangle breakdown.
Selling pressure will intensify on a sustained move below $0.145, preparing bears to take on the pattern target measured at $0.065.
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 ADA pessimists.
DOGE/USD: Daily chart
The 14-day Relative Strength Index (RSI), however, has entered into the oversold territory, suggesting that the recent decline in ADA price could be extensive and, therefore, it could be primed for a corrective pullback.
On the road to recovery, immediate resistance is seen at the recent range highs around $0.16, above which the $0.168-$0.17 price zone will be put to test.
A firm break above the latter will trigger the triangle breakout, confirming a bullish reversal and calling for a test of the bearish 50-DMA at $0.181.
Buyers will then gear up for a rally towards the $0.20 psychological magnet, negating any downside risks in the near term.
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