Top 3 Trending Cryptocurrencies, Cardano, Shiba Inu, Dogecoin: ADA Price Eyes Acceptance Above 21-DMA
- Cardano price remains capped below the key 21-DMA, with risks skewed to the downside.
- Shiba Inu continues to face stiff resistance at May 12 highs but easing overbought conditions keep bulls hopeful.
- Dogecoin price challenging critical barrier just above $0.24, as DOGE bulls fight back in control.
Crypto optimists have returned this Thursday, as most widely traded digital assets are seeing an upturn in prices. Bitcoin corrected briefly on Wednesday but quickly regained upside traction, as investors remain hopeful of a likely approval of Bitcoin Exchange Traded Funds (ETF) from the US Securities & Exchange Commission (SEC).
Amongst the DeFi tokens, Cardano appears most promising after Dogecoin, as industry experts and analysts turn bullish on ADA price, setting its year-end target at $15-$20. This comes after Cardano announces Satoshi's light wallets to increase the accessibility of cryptocurrencies and Non-Fungible Tokens (NFTs) with interoperability and ease of use.
Meanwhile, Dogecoin is likely to experience a shift in the sentiment in the coming days, as DOGE traders are looking to find a bottom after the recent downtrend.
Let’s see how Cardano, Shiba Inu and Dogecoin are positioned on the technical graphs.
Cardano price remains stuck in a familiar amid bearish RSI
Cardano price is taking positive cues from the bullish undertone seen across the crypto market this Thursday, as the buyers are having an upper edge after the one-month-long range play.
Despite the renewed upside momentum, ADA price remains confined within Monday’s trading range, as the bears aren’t ready to give up yet.
At the time of writing, ADA/USD is struggling to build onto the recent rebound from three-week lows of $1.968, as Cardano price continues to run into fresh offers near the $2.25 region.
As observed on Cardano’s daily chart, ADA price is trending within a parallel channel since mid-September, with investors eagerly awaiting a range breakout.
However, as for now, ADA bulls are yearning to find acceptance above the critical short-term 21-Daily Moving Average (DMA) at $2.21.
It’s worth noting that ADA price has not given a daily closing above the 21-DMA barrier since October 7.
Only a sustained break above the latter could help initiate a meaningful uptrend towards the channel resistance at $2.41, where the mildly bearish 50-DMA hangs.
An upside breakout from the horizontal channel will get confirmed on a daily closing above the mentioned powerful cap, opening doors for a strong rally towards the $3 mark.
The 14-day Relative Strength Index (RSI) has ticked higher but remains below the central line, suggesting that the risks likely remain to the downside for ADA buyers.
Further south, the wedge support at $1.81 will emerge as a strong cap. A firm break below the last would invalidate the bullish continuation pattern.
ADA/USD: Daily chart
However, as long as ADA price keeps its range below the 21-DMA, the downside remains exposed towards the fierce $2 support area. At the level, the upward-sloping 100-DMA closes in.
A channel breakdown will come into effect should the $2 support give way, calling for a sharp sell-off towards the bullish 200-DMA at $1.74.
Shiba Inu price needs to crack this key level to test October 7 highs
Shiba Inu is posting small los ses on Thursday, trading in an extremely tight range around $0.000028 amid a lack of any strong catalysts.
The move lower comes after SHIB price closed almost unchanged a day before, as the bulls lack a follow-through upside bias after last week’s outstanding performance.
The canine-inspired crypto coin soared nearly 400% at one point during the previous week, when SHIB price hit the highest levels since May 11 at $0.0000352.
SHIB price is extending its bullish consolidative mode into the seventh straight day this Thursday, with the May 12 highs of $0.0000315 acting as a tough nut to crack for SHIB bulls.
Technically, nothing seems to have changed for Shiba Inu this week, as the range trade continues.
Fierce support at $0.0000235, May 13 tops, will likely keep the downside in check.
The 14-day Relative Strength Index (RSI) trades listlessly, easing from an extreme overbought region, which keeps SHIB buyers hopeful.
However, Wednesday’s Doji candlestick and multiple rejections at the abovementioned strong hurdle suggests that a correction towards the May 13 highs cannot be ruled.
The additional upside will open up towards the May 11 highs of $0.0000379 only on acceptance above the May 12 high.
SHIB/USDT: Daily chart
Alternatively, a fresh downswing could kick in towards the October 8 lows of $0.0000206 if SHB sellers find a foothold below the May 13 high.
If the downside pressure intensifies, then additional declines towards the upward-pointing 21-Daily Moving Average (DMA) at $0.0000167 cannot be ruled out.
Dogecoin remains poised to extend the three-day uptrend
Dogecoin price staged a swift recovery on Tuesday from eleven-day lows of $0.2049, now extending the upswing into the third day in a row.
DOGE buyers seem to have regained control, helped by a better mood across the crypto board, as they look to recapture the $0.25 threshold.
Looking at Dogecoin’s daily chart, the falling trendline breakout witnessed on the Relative Strength Index (RSI) indicator seems to have sponsored the recent rebound in DOGE price.
The positive momentum propelled DOGE price to challenge bearish commitments at the descending 50-DMA at $0.2453, where the daily highs coincide.
For the recovery to extend, DOGE bulls need to clear the initial horizontal 100-DMA resistance at $0.2402, above which the 50-DMA hurdle will come into play.
Buying resurgence on a firm break above the latter could fuel a fresh upsurge towards the upward-pointing 200-DMA at $0.2704.
From a broader perspective, DOGE price is trending within a two-month-long falling wedge formation.
DOGE/USD: Daily chart
On the downside, rejection at higher levels will drag DOGE price back to the short-term critical support of the 21-DMA, now at $0.2244.
Sellers will regain control below the latter, as DOGE price will resume its correction from one-month highs. Immediate support is aligned at the October 11 lows of $0.2049.
Should DOGE bulls fail to defend the weekly lows a test of the falling trendline (wedge) support at $0.1794 will be on the bears’ radars.
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