- Shiba Inu gears up for the next downswing amid a potential bear cross on the 1D chart.
- Decentraland on track to test $7.25 as the pullback offers MANA buyers a good buying opportunity.
- Cardano price eyes a sustained move below $1.50, as the risks remains skewed to the downside.
The crypto market is witnessing inductiveness, with a bull-bear tug-of-war seen after last Friday’s broad sell-off. The tumble could be attributed to the thin liquidity conditions, as most traders were on the sidelines, enjoying the Thanksgiving Day break.
This Monday, the pioneer cryptocurrency, Bitcoin, is making a comeback towards the $60K mark after finding support near $54,000. Ethereum is closing in on the $4,400 level.
Markets remain hopeful that the effects of a new covid variant called Omicron is not so severe, which could otherwise have a significant negative impact on the high beta assets, such as the cryptocurrencies.
The recent sluggish performance in the crypto market could be attributed to India’s latest update on the prohibition of private cryptocurrencies, which did not go well with the Indian crypto investors.
Looking at the altcoins, Shib Inu appears vulnerable while Decentraland is prepping up for an explosive rally, as industry experts believe that dip buying is likely to aid the renewed upside.
Meanwhile, Cardano bulls defy the encouraging news that the protocol’s network activity has increased amid an influx of Dapps in the blockchain.
How are Shiba Inu, Decentraland and Cardano positioned on the technical charts?
Shiba Inu remains vulnerable while below key $0.0000415 support
Shiba Inu is extending its side trend into the third straight trading session this Monday, consolidating Friday’s sell-off to four-week troughs of $0.000356.
The bearish consolidative mode can be seen as a good selling opportunity for SHIB traders, as it means that the sellers are gathering strength before kicking in the next downswing.
On Friday, SHIB bears fought back control and how, as they reversed Thursday’s dead cat bounce and went deeper into the red, as the renewed downside was exaggerated by the thin market conditions.
At the press time, the canine-themed coin is posting small losses to trade around the $0.0000385 region, looking to breach the immediate support near mid-$0.0000350 on a sustained basis.
Shiba Inu’s daily chart shows that SHIB price is poised for deeper losses, especially after the bears found acceptance below the critical $0.0000415 support last Wednesday.
The level is the 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 treading water below the central line, suggesting that SHIB sellers are looking forward to a fresh impetus to take on the additional downside.
Adding credence to the bearish view, the descending 21-DMA is on the verge of piercing the mildly bullish 50-DMA from above, which if occurs will confirm a bear cross formation on the said time frame.
A daily closing below the $0.0000352 demand area, will expose the next crucial support at $0.0000272, the base from where the record rally kicked in. The upward-sloping 100-DMA coincides at that point.
Further south, the horizontal 200-DMA appears at $0.0000179.
SHIB/USDT: Daily chart
Meanwhile, for any recovery to gain a conviction, SHIB bulls will need to recapture the previous support now resistance at $0.0000415.
Buying opportunities will arise for a test of $0.0000450, where the 21 and 50-DMAs coincide.
The next stop for the bulls is seen at $0.0000506, which is the intersection of the 38.2% Fibo level and mildly bearish 21-DMA.
A sustained move above that level will help fade the negative momentum for the time being, calling for a retest of the strong barrier at $0.0000580, which is the 50% Fibo level.
Check Out: Why Shiba Inu Is One Of The Cheapest Cryptocurrencies
Decentraland price is prepping up for the next leg higher
Decentraland price is snapping its two-day uptrend on Monday, as MANA sellers continue to lurk near $5.50, capping the upside attempts.
MANA price is currently trading at $4.91, down over 4.5% on a daily basis, unable to find comfort from a brief recovery stint seen across the crypto space.
Despite the latest pullback, MANA price continues to waver within last week’s trading range, extending the consolidative phase after hitting all-time highs of $6.098 on Thanksgiving Day.
From a short-term technical perspective, the negative price-Relative Strength Index (RSI) divergence spotted last Thursday did work well in favor of Decentraland sellers.
MANA price incurred a roughly 10% loss on Friday, in an extended correction from record highs. The price action over the last few trading days suggests that the bulls are biding time before initiating a fresh rally towards $7.25.
That level is a symmetrical triangle pattern target. The MANA bulls confirmed the triangle breakout on the daily sticks last Wednesday after they yielded a convincing break above the falling trendline resistance, then at $4.35.
The daily RSI is pointing lower around 65.10 but has retraced from the overbought region. The leading indicator, thus, suggests that the bullish momentum could revive in the coming sessions.
Ahead of that, the lifetime highs will be retested by the MANA optimists.
MANA/USD: Daily chart
On the flip side, rejection near the $7 mark could recall the sellers, which could prompt a fresh correction from record highs.
An immediate cushion for MANA buyers is envisioned at Wednesday’s high of $5.58, below which the corrective decline is likely to accelerate.
The next downside target is aligned at the triangle resistance-turned-support, now at $4.25.
The further downside will call for a retest of Wednesday’s low of $3.78, which is now a robust support area, comprising of the ascending 21-DMA and triangle support.
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Cardano price is ‘sell on bounce’ after last week’s technical breakdown
ADA price is trading virtually unchanged so far this Monday, faltering its V-shaped recovery from three-month lows of $1.42 reached Sunday.
In doing so, Cardano price is looking to resume the downtrend that kicked started following the rejection just below $2.50. The bears flexed their muscles after the price failed to find acceptance above the $2 threshold.
Looking at Cardano’s daily chart, ADA price remains vulnerable ever since it charted a downside breakout from a falling wedge formation in the previous week.
The bearish breakdown led to the pattern failure of the wedge breakout seen on November 9, defining it as a fake-out.
The latest downtick in the no. 6 coin is justified by the sluggish movement seen in the 14-day RSI. However, the downside bias remains on the table, as the leading indicator sits just above the oversold region.
The calls for additional declines are also backed by the bearish crossover, represented by the downward-pointing 21-DMA having cut the horizontal 200-DMA from above.
If the selling momentum picks up pace, then ADA bears will retest the multi-year lows near $1.40.
Further south, ADA sellers will target the levels last seen in early August at $1.36, followed by the $1.30 round figure.
ADA/USD: Daily chart
Alternatively, any recovery attempts will need a firm break above the wedge support now resistance at $1.75.
ADA bulls will then look to surpass the critical hurdle at $1.87, which is the intersection of the 21 and 200-DMAs.
The bearish outlook will get negated only a firm break above the $2 level, where the downward-sloping 50-DMA emerges.
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