Top 3 Trending Cryptocurrencies, Shiba Inu, Decentraland, Cardano: Defending 100-DMA Is Critical For SHIB Bulls 

Last Updated December 6th 2021
5 Min Read
  • Shiba Inu remains poised for more downside as sellers look to retest the 100-DMA support. 
  • Decentraland price returns to the red after Saturday’s impressive rebound, as $2.95 beckons. 
  • Cardano price could challenge the bullish commitments, as daily RSI peeps into the oversold territory. 

Following a brief breather from Saturday’s flash crash, the crypto market is once again in a sea of red on Monday, with the pioneer digital asset, Bitcoin, looking to extend the breach of the critical $50,000 level. 

Crypto analysts and industry experts assess whether there is more downside in the making, in light of heavy sell-off in Bitcoin. 

The US employment data sealed in faster-tapering expectations from the Fed next week while uncertainty over the new Omicron covid variant further exacerbated the risk-off action across the financial markets. These factors shook out the cryptocurrencies on Saturday morning amid thin liquidity, resulting in a significant sell-off. 

Stops got triggered on a break below the $50,000 mark for Bitcoin, with the effect snowballing into the altcoins as well. The downbeat tone is back in play, with risks skewed to the downside for some of the hot DeFi tokens such as Shiba Inu, Decentraland and Cardano. 

Let’s see how these three DeFi tokens are positioned on the technical graphs. 

Shiba Inu remains vulnerable so long as it holds below $0.0000415 

After catching a temporary breather on Sunday, Shiba Inu sellers have regained control this Monday, extending the losing spree into the sixth straight day.    

Despite the ongoing bearish momentum, a bottom seems to be far off for SHIB price, as traders eye deeper losses while it holds below the critical $0.0000415 barrier. 

After attempting a recovery from five-week lows in the first half of the previous week, SHIB buyers lost the battle to sellers above $0.0000500, triggering a fresh downswing. 

This could be attributed to a bear cross confirmation on the daily sticks after the descending 21- Daily Moving Average (DMA) pierced the mildly bullish 50-DMA from above.

As the corrective downside from all-time highs of $0.0000885 picked up pace on Saturday, SHIB price reached the lowest levels in two months at $0.0000292, having tested the ascending 100-DMA back then. 

At the time of writing, SHIB price is capped between two key critical barriers, with the upside limited by a powerful hurdle at $0.0000415. That level is the confluence of the bearish 21-DMA and 23.6% Fibonacci Retracement (Fibo) level of the rally from October 21 lows of $0.00000270 to the record high. 

The 14-day Relative Strength Index (RSI) is pointing south while below the central line, suggesting that SHIB sellers are likely to emerge as the clear winners going forward. 

Once again, the 100-DMA support, now at $0.0000300, will challenge the bullish commitments, below which the $0.0000272 will come into play. 

That level is the last line of defence of SHIB bulls as it forms a base from where the record rally kicked in. Further south, the horizontal 200-DMA appears at $0.0000179.

SHIB/USDT: Daily chart 

SHIB/USD daily chart 120621

Meanwhile, SHIB bulls will need to recapture the previous support now resistance at $0.0000415 to initiate any meaningful turnaround in the SHIB price action.

The next significant supply zone is seen around $0.0000475-$0.0000506, where the 38.2% Fibo level and mildly bullish 50-DMA close in. 

A sustained move above that level could help reverse the negative momentum, calling for a retest of the strong cap at $0.0000580, which is the 50% Fibo level.

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Decentraland price eyes a retest of 100-DMA support 

Decentraland price is back in the red for the second consecutive day, starting out the week on the wrong footing, despite the end of the week solid recovery. 

In doing so, MANA price is shedding roughly 9% on the day, currently trading at $3.35, as the selling pressure around Decentraland token remains unabated. 

MANA bears are back in the game after the price failed to withstand the bearish pressures above the $4 threshold. 

Looking at the 12-hour chart, MANA price remains on track to retest the upward-sloping 100-Simple Moving Average (SMA) at $2.95 after the rebound lost legs above the bullish 50-SMA, now aligned at $4.05.

The RSI inches lower towards the oversold region while below 50.00, keeping the downside potential intact in MANA price. 

Selling resurgence will trigger a fresh downswing below the 100-DMA cushion, exposing the next relevant support of the horizontal trendline at $2.75. 

A breach of the 100-DMA will accelerate the bearish momentum led by the downside breakout from a five-day-old rising wedge formation confirmed last Wednesday. 

MANA/USDT: 12-hour chart

MANA/USD 12-hour chart 120621

If the 100-SMA manages to stem the declines, then a rebound towards the upward-sloping 50-SMA cannot be ruled.   

Acceptance above that upside hurdle will open doors towards the bearish 21-SMA at $4.32. 

The additional recovery could challenge the wedge support now resistance at $5.31. Ahead of that level, the $5 mark will be on MANA buyers’ radars. 

Check Out: Decentraland (MANA) Trading Predictions

Cardano price could likely rebound amid oversold RSI conditions

ADA price is tracking the broader declines across the crypto market, down as much as 6% so far this Monday, although remains well within Saturday’s trading range. 

Cardano price looks vulnerable despite the recent minor pullback from daily lows of $1.30, as investors continue to see the no.6 token as sell on bounce. 

With the 14-day RSI on the daily chart showing oversold conditions, ADA price could risk a rebound in the sessions ahead. 

Cardano’s road to recovery could face stiff resistance at the heavily bearish 21-DMA at $1.66. 

Daily closing above the key $1.75 barrier will offer fresh zest to ADA buyers. That level is the falling wedge support-turned-resistance.  

Note that Cardano price confirmed the bearish wedge breakdown in the previous week.

 A daily closing above the latter will open up the further upside towards the horizontal 200-DMA at $1.87. 

Only a decisive break above the $2 round number will negate near-term bearish outlook on ADA price. 

ADA/USD: Daily chart

ADA/USD daily chart 120621

However, the 50-DMA is looking to cross the 200-DMA from above, which if materialized will validate a death cross formation. 

The death cross could revive the downside momentum, calling for a retest of the daily lows, below which Saturday’s low of $1.09 could be tapped. 

Read Also: What Will Cardano Be Worth In 2025?