- Shiba Inu bulls gather pace to clear the final 50-DMA hurdle on its journey towards $0.000050.
- Cardano price keeps rallying, as bulls await acceptance above this key barrier on the daily sticks.
- Luna price stalls four-day winning streak below 105.00 amid overbought daily technical conditions.
The crypto market has kicked off the final trading week of 2021 on a positive note, with the pioneer digital asset, Bitcoin sitting comfortably above the $51,000 mark.
Despite holiday-thinned market conditions, the bullish tone seen over the weekend remains intact, as traders eye an upbeat start to 2022. Thin volumes could likely exaggerate the moves in the cryptocurrencies, as investors reposition heading into the year-end.
Amongst the altcoins, Shiba Inu, Cardano and Terra have shown some promising valuations over the last few days. Terra’s LUNA price has recorded all-time highs after token's total value locked (TVL) jumped to over $21 billion, outpacing other Ethereum-killers in growth in its total value locked.
Meanwhile, Cardano price spiked after Cardano founder Charles Hoskinson laid out 2022 plans. Hoskinson said: “My goal for the second half of 2022 is to figure out how to put all the pieces together to get an end-to-end microfinance transaction on Cardano.”
“A formal open-source project structure is going to be formed, kind of like Hyperledger to Linux,” he added.
Let’s see how are these three trending DeFi tokens positioned on the technical graphs.
Shiba Inu looks to take out 50-DMA resistance
Shiba Inu price is lacking momentum on Monday, extending its upside consolidation phase into the fourth consecutive trading day, in what seemingly are holiday-thinned market conditions.
SHIB bulls capitalized on this month’s downtrend, as they resorted to bargain hunting, lifting price to three-week highs of $0.0000398 on Christmas Eve.
SHIB buyers held onto the renewed upside over the weekend, keeping hopes alive for further advance.
At the time of writing, SHIB price is trading in close proximity to the multi-week highs, almost unchanged on the day.
Technically, SHIB price is trapped between two key Daily Moving Averages (DMA), with the path of least resistance appearing to be the upside.
The range play comes after SHIB price extended the upside breakout from a two-month-long falling wedge formation on acceptance above the confluence of the horizontal 21 and 100-DMAs around the $0.0000350 level.
The 14-day Relative Strength Index (RSI) has turned flat but holds above the midline, suggesting that buyers are biding time before the next upswing kicks in.
SHIB bulls need to scale above the downward-pointing 50-DMA at $0.0000410 to unleash further recovery towards the $0.000050 round figure
The next stop for SHIB optimists is envisioned at the November highs of $0.0000543.
SHIB/USDT: Daily chart
On the downside, acceptance below $0.0000350 will revive the selling bias, calling for a retest of the December 4 flash crash low at $0.0000295.
Daily closing below the latter will confirm a bearish reversal, putting back the focus on the 200-DMA support at $0.0000215.
Cardano price remains in hands of ADA bulls, more gains in the offing?
Cardano bulls are in the driver’s seat this Monday, benefiting from thin liquidity and upbeat tone seen across the crypto market.
ADA bulls are testing the critical supply zone, as Cardano price explodes 8% so far, sitting at fresh monthly top above $1.50.
The renewed buying interest could be witnessed after Sunday’s sluggish performance, as the so-called ‘Ethereum-killer’ resumes the bullish reversal, well depicted by its daily technical setup.
On the said time frame, ADA price is challenging the critical downward-sloping 50-DMA resistance at $1.60, as it breaks higher from a four-day side trend.
In doing so, ADA price is extending its rally in lieu of a falling wedge breakout confirmed on December 21.
ADA bulls need to crack the 50-DMA barrier to continuing the correction from multi-week lows of $1.13.
Further up, ADA price could run into a strong upside barrier around the December 2 highs of $1.786, which will be a tough nut to crack.
Buying resurgence will be seen above the latter, exposing the next bullish target at around $1.85. That level is the convergence of the 100 and 200-DMAs.
The 14-day RSI is pointing north above the midline, heading towards the overbought territory, backing the ongoing bullish momentum.
ADA/USD: Daily chart
Failure to find a strong foothold above the 50-DMA on a daily closing basis could recall ADA sellers towards mildly bullish 21-DMA at $1.33.
A sustained break below the last will challenge the December 4 lows of $1.13 once again, below which the wedge support at $1.10 will rescue bulls.
The July lows near the $1.00 level will be the next downside target for ADA sellers.
Terra’s LUNA price turns south after rejection at daily resistance line
Terra LUNA price is in the red for the first time in five days in a row, starting the week on the wrong footing,
The pullback in LUNA comes after price hit a fresh all-time high of $104.41 earlier on, as bulls buck the overall positive sentiment in the digital assets’ space this Monday.
LUNA price is down roughly 3% on a daily basis, trading at $96.75, at the press time. The altcoin has lost the 100 mark once again, as abrupt moves continue amid light trading conditions.
From a short-term technical perspective, LUNA price has turned south after facing stiff resistance just below the rising trendline, connecting December 4 and 24 highs, at $105.53.
The downtick in the daily RSI from the extremely overbought region justifies the pullback in LUNA price from record highs.
Despite the retreat in the RSI, the leading indicator holds well above the midline, suggesting that the correction in Terra price could be a good buying opportunity.
Should the corrective pullback pick up pace, LUNA price could fall further towards the next relevant support around the $84.20 region.
The upward-sloping 21-DMA at $75.86 could then save the day for LUNA bulls.
LUNA/USD: Daily chart
However, daily closing above the aforesaid powerful resistance near mid-105s will kickstart a fresh uptrend, with bulls aiming for yet another lifetime highs in the $110.00 price range.
Although it may not be a smooth sail for LUNA traders on the upside, as acceptance above the latter will be critical to take on the $120.00 threshold.