- Shiba Inu bulls have an upper hand amid favourable fundamentals and technical factors.
- Cardano price confirms a falling wedge breakout on the 1D chart, 21-DMA is a robust resistance.
- Solana bulls eye further upside towards $200 amid price-RSI positive divergence on the daily sticks.
A Santa rally in the crypto market still remains out of sight, as the most widely traded digital assets trade listlessly on Wednesday amid pre-Christmas tepid conditions.
Slowing volumes, minimal volatility and Omicron worries continue to keep traders away from active participation. Bitcoin, the flagship cryptocurrency, remains capped below $50,000 while Ethereum hovers around the $4,000 mark.
Amongst the altcoins, Shiba Inu, Cardano and Solana appear promising, as they witnessed some bullish technical confirmations.
Adding credence to SHIB’s upsurge, large holders (whales) of Shiba Inu bought 4 trillion Shiba Inus for $134 million early Tuesday, according to data from WhaleStats, Meanwhile, Cardano price is likely to initiate a fresh rally heading into 2022.
Let’s see how are these three trending DeFi tokens positioned on the technical graphs.
Shiba Inu awaits acceptance above 21-DMA for additional gains
After Monday’s subdued trading action, Shiba Inu bulls picked up strength, which is extending into the second straight day this Wednesday.
Investors saw the recent downside consolidation phase near $0.0000295 as a good bargain buying, as SHIB price formed a notable base to kickstart an uptrend.
Encouraging fundamental news also played its part in Shiba’s recovery rally from almost three-week troughs, which paved the way for a bullish technical breakout on the daily sticks.
As of writing, SHIB price is trading close to one-week highs of $0.0000365, up roughly 7% on the day.
SHIB bulls now await a daily closing above $0.0000350 to extend the upside breakout from a two-month-long falling wedge formation confirmed Tuesday.
That level is the confluence of the bearish 21-Daily Moving Average (DMA) and ascending 100-DMA, which acted as a critical support a week ago.
The 14-day Relative Strength Index (RSI) is pointing north, teasing the midline. The uptrend in the leading indicator also backs the renewed upside in SHIB price.
Fresh buying opportunities could emerge above the 21 and 100-DMA strong hurdle, opening gateways for a rally towards the downward-pointing 50-DMA at $0.0000430.
The next bullish target is envisioned at the $0.000050 round figure.
SHIB/USDT: Daily chart
On the downside, immediate support is seen at $0.0000350, below which SHIB price will challenge fierce support of the December 4 flash crash low at $0.0000295.
If the latter is breached on a daily closing basis, sellers will reappear, targeting the wedge support at $0.0000222. The 200-DMA closes in on that level.
Check Out: Should You Buy Shiba Inu? 5 Pros, 5 Cons
Cardano price looks north but bulls could face a bumpy road
Cardano price is trading on the front foot, building onto the previous day’s rebound despite the holiday-thinned market conditions.
With the renewed bullish momentum, ADA bulls are gearing up for a rally towards the $1.50 psychological figure, currently trading at $1.35. The altcoin is adding over 5% on a daily basis.
Despite Cardano’s turnaround, ADA buyers still remain cautious about placing any aggressive bids amid a sluggish undertone seen across the crypto market this Wednesday.
On the daily chart, ADA price is battling the short-term critical 21-DMA resistance at $1.34, as bulls appear to face exhaustion after the recent upsurge.
ADA price broke the three-week-long consolidative mode to the upside on Tuesday, prompting a big bullish breakout from a falling wedge pattern that was in the making since the November 9 peak of $2.405.
ADA bulls will have to find a strong foothold above the 21-DMA barrier to continue the corrective pullback from multi-week lows.
ADA price could meet the initial supply zone around the December 12 highs of $1.45, beyond which the bearish 50-Daily Moving Average (DMA) at $1.65 could come into play.
Further up, ADA bulls will probe the December highs at 1.78, with eyes on the horizontal 200-DMA pegged at $1.84.
ADA/USD: Daily chart
The 14-day RSI is seeing a fresh uptick but it remains below the midline, keeping ADA sellers hopeful.
Rejection above the 21-DMA could reinforce the selling interests, exposing the wedge resistance-turned-support at $1.23.
Deeper declines will likely challenge the December 4 lows of $1.13 once again, opening floors towards the July lows near the $1.00 level.
The wedge support at $0.72 will be the line in the sand for ADA optimists.
Solana price readies for an extended uptrend amid favorable technicals
Solana price has returned to the green zone after a negative start to this Christmas week, as bulls have fought back control over the past two trading days.
Despite the two-day uptrend, SOL price remains within the previous week’s trading band, awaiting a strong catalyst to yield a sustained upside breakout.
SOL price is off the three-day highs but holds about 2.75% gains on the day, trading at $185, at the press time.
From a short-term technical perspective, SOL bulls are testing the bears’ commitments at the bearish crossover of the downward sloping 21-DMA and horizontal 100-DMA. That point of convergence is around $185.
Daily closing above the latter will offer the much-needed zest to SOL buyers, reviving the recovery momentum towards the November 19 top of $192.
The next significant upside barrier for SOL traders is envisioned at $200 the figure, followed by the immediate cap at $207, where the 50-DMA coincides with the December 7 high.
The risks remain skewed to the upside for Solana price amid a price-RSI positive divergence spotted on the daily chart.
SOL/USD: Daily chart
However, if SOL bulls fail to sustain at higher levels, then price could see a sharp retracement towards the daily lows of $176.
Further south, the rising trendline support at $172 will be on the sellers’ radars. A fresh sell-off towards the two-month lows of $147 cannot be ruled should the downside gather traction.
The bearish crossover mentioned above could be then brought into play.