- Defending key $0.0000415 support is critical for SHIB bulls to initiate a fresh upswing towards $0.0000580.
- Dogecoin price looks south towards $0.20 after the breakdown from the critical daily support line.
- Cardano price challenges bullish commitments at the falling wedge support, as 200-DMA caves in.
After the bull run seen earlier this week, the crypto market has gone back into a shell, as investors witness a sea of red on Thursday. The pioneer digital asset, Bitcoin, has pulled back below the $60,000 level.
The sudden crypto price crash has wiped around $400 billion from the combined crypto market. “The drop seems to be related to excessive leverage in the system being flushed out,” Jan Wuestenfeld, an analyst at CryptoQuant noted.
Wuestenfeld, however, was quick to add, “as long as on-chain fundamentals do not change on these price corrections, the medium-term outlook remains bullish.”
The damp mood is also seen across the DeFi tokens, with the widely watched Dogecoin, Shiba Inu and Cardano incurring steep losing, as of writing.
The technical setup seems to outweigh the encouraging fundamentals for Shiba Inu. Shiba Inu (SHIB) is the largest ERC-20 token holding amongst the top 1,000 Ethereum (ETH) whales, according to data compiled by WhaleStats.
Despite the bearish technical outlooks for the dog-themed coins, Bloomberg Intelligence commodity strategist Mike McGlone said, “we say the sooner the better for the speculation machine coins to experience some purging, so as to move on with the adoption process of crypto assets in investment portfolios.”
How are Shiba Inu, Dogecoin and Cardano positioned on the technical charts?
Shiba Inu price has room to decline before the next upswing
Shiba Inu is extending its downbeat tone into the third consecutive day on Thursday, pressurizing two-week lows near $0.0000450 amid a broad crypto market sell-off.
In doing so, the canine-themed coin has broken the previous week’s consolidative mode, looking to resume the correction from the all-time highs of $0.0000880 reached on October 27.
As observed on Shiba Inu’s daily chart, sellers took over complete control after SHIB price failed to find acceptance above a powerful resistance at around $0.0000580.
That zone is the convergence of the downward-pointing 21-Daily Moving Average (DMA) and the 50% 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 midline, suggesting that there remains scope for the further downside.
Therefore, immediate support for SHIB bulls now aligns at $0.0000415, where the 23.6% Fibo level and rising 50-DMA coincide.
A fresh sell-off cannot be ruled out on a daily closing below the latter, exposing the next significant cushion at $0.0000272, from where the record rally kicked in.
SHIB/USDT: Daily chart
Alternatively, any renewed upside attempts will face initial resistance at $0.0000506, the 38.2% Fibo level.
A sustained move above that level will call for a retest of the abovementioned strong hurdle at $0.0000580.
Only a daily closing above that barrier will initiate a fresh advance towards the 61.8% Fibo level of the same ascent at $0.0000650.
The 78.6% Fibo level at $0.0000753 will be level to beat for SHIB buyers.
Read Also: When Will Shiba Inu Coin Reach $1?
Dogecoin price eyes deeper losses amid bearish technicals
Dogecoin price is down nearly 3% so far this Thursday, consolidating the recent tumble to three-week lows of $0.222 reached on Tuesday.
Tuesday’s sell-off triggered a range breakout in the meme coin after the previous week’s sluggish performance around $0.25 levels.
DOGE price currently trades just above $0.23, reversing a temporary bounce seen a day before, as bears look to flex their muscles, as the sentiment remains dour across the crypto space.
The dog-themed coin started out a fresh downtrend after the price gave a daily closing below a critical demand area at around $0.2550-$0.2525, where the three-month-long rising trendline support merged with the mildly bullish 50-Dailly Moving Average (DMA).
Backing the downside bias, the 14-day Relative Strength Index (RSI) keeps pushing lower below the 50.00 level.
DOGE bears need to take out Tuesday’s low of $0.222 convincingly to accelerate the decline towards the October 27 lows of $0.2179.
Further south, the next downside target is envisioned at the horizontal trendline support at $0.2063.
Should the bearish momentum accelerate, a test of the end-September lows around $0.1920 will be on the cards.
DOGE/USD: Daily chart
On the flip side, Dogecoin’s road to recovery will run into stiff resistance at the previous crucial support now resistance around $0.2525. At the moment, the 100-DMA also hangs around that price zone.
The upbeat momentum will pick up pace only on acceptance above the slightly bearish horizontal 21-DMA, now at $0.2633.
The all-important 200-DMA at $0.2827 will be a tough nut to crack for DOGE bulls.
Check Out: Why Dogecoin Is Going To Explode In 2022
Cardano price risks remain skewed to the downside
ADA price is witnessing selling resurgence after Wednesday’s brief calm, which was seen as a breathing time for the bears before another descent follows.
Cardano price is resuming the downtrend after peaking out at $2.40 earlier this month, although remains within Tuesday’s trading range.
ADA sellers continue to cheer the underlying bearish momentum in the crypto market, as the $2 threshold gives way once again.
From a short-term technical perspective, Cardano price is on track to invalidate the upside breakout triggered from a falling wedge formation on November 9.
The bearish RSI justifies the ongoing bearish streak in ADA price, as the leading indicator trades deep in the negative territory, below 50.00.
The downside pressure intensified after ADA price breached the critical 21-Daily Moving Average (DMA) on a daily closing basis.
The additional decline below the 200-DMA at $1.87 exacerbated the pain in the ADA price.
The last line of defense for ADA bulls is at the falling wedge support of $1.77, below which ADA sellers will look out for levels not seen since August this year.
ADA/USD: Daily chart
Alternatively, if the recovery momentum sustains above the 200-DMA support-turned-resistance, then a run back towards the bearish 21-DMA, now at the $2 mark cannot be ruled out.
The downward-sloping 50-DMA barrier at $2.10 will then emerge as a fierce resistance, limiting the upturn in Cardano price even as ADA buyers manage to find acceptance above the 21-DMA cap.
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