Top 3 Trending Cryptocurrencies Cardano, Dogecoin, Vechain: ADA bulls eyeing for a test of $1.50

Last Updated July 23rd 2021
6 Min Read
  • Cardano holds onto critical support, with technical indicators on the daily chart pointing to more gains.
  • Dogecoin’s bullish bias remains intact while above 21-SMA on the 4H chart, $0.10 on the cards?
  • Overbought RSI on the 4H chart warrants caution for Vechain, as $0.1320 acts as a key resistance.
  • After a quiet start to the week, thanks to the Easter weekend break, the crypto markets failed to pick up the momentum, as the pioneer digital asset, Bitcoin, remained confined within a familiar band below the $60,000 mark.

    The sluggish tone across the crypto space failed to do any good to the DeFi tokens, except for a handful of them - Cardano, Dogecoin and Vechain, which showed some promising signs and encouraged the optimists.

    Fundamentally, Cardano remains well-positioned for an upswing, especially in light of the surge in new addresses. Adding to it, the announcement of Cardano’s latest protocol update could also collaborate with an upside in the prices.

    IOHK, the development team behind Cardano, announced: ‘Alonzo will add support for smart contracts – digital agreements – to Cardano about four months from now. It will open up opportunities for businesses and developers, by allowing the creation of smart contracts and decentralized applications (DApps) for decentralized finance (DeFi).”

    As the uptick triggered by Elon Musk’s tweet on April 1 fails to sustain, the Shibu Inus-inspired digital asset, Dogecoin, once again attempts to take on upside, underpinned by bullish on-chain metrics.

    The In/Out of the Money Model shows that shows 58,000 addresses that previously purchased 8.92 billion DOGE at $0.061 are "Out of the Money.” This suggests that it's going to be smooth sailing for the buyers, as the abovementioned level is envisioned to cave-in easily. 

    How are these trending cryptocurrencies positioned on the technical graphs?

     

    Cardano: Bulls prepping up for a rally towards $2 but $1.45 needs to be cleared first

    The ADA/USD pair continues to waver back and forth in familiar rages between $1.30 and $1.16 so far this week.

    Looking at the broader picture, Cardano is trending at the lower base of a two-month-old ascending triangle formed on the daily chart, with strong resistance seen near the $1.45 region.

    At that level, the token has faced rejection on a couple of occasions, prompting the sellers to fight back control.

    However, the strong bids have persistently emerged near $1.1570-50 zone, which is the convergence of the upward-sloping 50-daily moving average (DMA) and rising trendline (triangle) support.

    A daily candlestick closing below the abovementioned support could validate an ascending triangle breakdown, opening floors towards the March 25 low of $1.06716.

    A sustained move below that level could expose the $1 round figure.

    ADA/USD: Daily chart

    However, with the 14-day Relative Strength Index (RSI) holding up above the central line, currently at 53.18, the bulls remain hopeful.  

    Recapturing the weekly high at $1.2915 is critical, in order to boost the bullish momentum towards the horizontal trendline (triangle) resistance at $1.45.

    If the bulls manage to take out that hurdle on a daily closing basis, we could see a fresh leg higher towards the 2.06 level, which is the measured target should the upside break from the triangle get confirmed.

    Read  Also: Cardano Price Prediction - Will ADA Value Rise?

    Dogecoin: Testing the critical near-term support as RSI turns south but stays bullish

    DOGE/USD failed to sustain Thursday’s rebound, as sellers returned amid a down day for the cryptocurrencies across the board.

    The DOGE bulls failed to find acceptance once again above $0.065, as investors moved past Musk’s tweet-led spike.

    Looking at Dogecoin’s four-hour chart, the meme-based coin is challenging the ascending 21-simple moving average (SMA) at $0.061. The bulls faced rejection once again at higher levels.

    The latest leg down in the coin could be traced to a sharp U-turn seen in the RSI from around 61 to 53.51, where it now wavers.  

    Note that the price is wavering within a triangle on the said time frame since the start of this month, making higher highs.

    The price has managed to hold above the 21-SMA over the past two trading sessions while the RSI still trades within the bullish zone.

    The abovementioned observations continue to paint a constructive outlook for Dogecoin in the near term.

    To the upside, the DOGE buyers need to find a strong foothold above Thursday’s high of $0.0632 to revive the upside momentum.   

    The next relevant barrier for the spot is seen at the triangle resistance located at $0.065. Further up, the $0.10 level will likely remain on the buyers’ radars.

    DOGE/USD: Four-hour chart

    Alternatively, a four-hourly candlestick closing below the 21-SMA could offer that extra zest to the DOGE sellers.

    The confluence of the upward-sloping 50-SMA and the rising trendline (triangle) support around $0.0595 could challenge the bearish commitments.

    Don't Miss: Why Dogecoin is Going to Explode

    Vechain: Closing in on the rising wedge hurdle as RSI reflects overbought conditions

    The parabolic rise in Vechain appears to run out of steam this Friday, as the VET bulls face exhaustion.

    On the four-hour chart, VET/USD is closing in on the rising wedge resistance at $0.1302 after the uptrend regained traction on Wednesday from near the $0.1030 region.

    The bulls need to take out this key hurdle to chart a rising wedge breakout, which could call for a retest of the all-time-highs of $0.1293 reached in the last hours.

    However, with the RSI edging higher within the overbought territory, the bullish bias is seen weakening, which suggests that a corrective pullback could be in the offing in the near term.

    VET/USD: Four-hour chart

    If the sellers take over control, a test of the April 7 high at $0.1207 will be inevitable.

    A breach of the last on a sustained basis will challenge the fierce support at $0.1129. At that level the bullish 21-SMA and rising trendline (triangle) support intersect.

    A rising wedge breakdown could then be confirmed, negating the upside bias while bringing the ascending 50-SMA support at $0.1014 back in play.

    To conclude, the VET bulls are losing conviction amid overbought RSI conditions.

    Check Out: How to Identify Cryptocurrency Market Trends

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