Top 3 Trending Cryptocurrencies, Cardano, Solana, Shiba Inu: ADA Risks Remains Skewed To The Downside
- Cardano bulls need to recapture 21-DMA to provide credence to the recovery from Tuesday’s flash crash.
- Solana price could test 21-SMA on 12H chart should the correction from lifetime highs extend.
- Shiba Inu bears to retain control while below 50-DMA, RSI remains in the bearish zone.
A fresh bid wave appears to have gripped the crypto market on Thursday, as the pioneer cryptocurrency, Bitcoin is advancing once again towards $50,000 after finding some support around mid-$45,000s.
The altcoins are also taking a positive lead from the granddaddy of cryptocurrencies, with the exception of Solana, which is riding its own wave since August.
Investors still remain bullish on Solana, reflective of the growing interest in Solana’s blockchain as an emerging rival to Ethereum. Solana blockchain is seen as a public ledger currently leading the decentralized finance (DeFi) and nonfungible token (NFT) sector boom.
Meanwhile, Cardano price is seeing buying resurgence, as all eyes remain on the September 12 Alonzo Hard Fork. Cardano DeFi is set to offer compatibility upgrades across the software stack, with smart contracts rollout on the cards.
Shiba Inu price also attempting a comeback but uncertainty prevails over the canine-inspired crypto coins. This comes after a new report from AMBCrypto suggests that Shiba Inu coin and Dogecoin have reached their peak as the hype seems to have faded.
“These memecoins are finally proving what they actually are, coins that cannot be taken seriously”, according to AMBCrypto.
How are these three coins positioned on the charts?
Cardano’s Recovery Appears Shallow, 50-DMA Support Holds The Key
Cardano price continues to witness volatility for the third trading day in a row on Thursday, as ADA bulls attempt a tepid recovery following Tuesday’s crash to three-week lows of $1.96.
The meltdown in ADA price earlier this week, snapped its uptrend to lifetime highs, tempering the bullish momentum that kickstarted in early August.
Note that ADA price clocked a fresh record high at $3.16 last Thursday, after which the Cardano has changed course, triggering a corrective pullback.
Tuesday’s collapse saw ADA price reversing the rally from mid-August.
Technically, the corrective downside in ADA price got trigger after the confirmation of a rising wedge breakdown on the daily sticks.
The record run in ADA price that started out from August 23 carved out a rising wedge pattern, formed by higher highs and higher lows.
ADA bears flexed their muscles after wedge support at $2.81 caved in on Tuesday, sparking a massive slide.
The sell-off saw ADA price taking out the upwards-loping 21-Daily Moving Average (DMA), then at $2.71, as the sellers briefly tested the bullish 50-DMA, then at $2.00.
The 14-day Relative Strength Index (RSI)has recaptured the central line, suggesting that the recovery could extend.
However, ADA price remains vulnerable to renewed downswing so long as it holds below the 21-DMA support-turned-resistance, now at $2.74.
ADA/USD: Daily chart
On the other hand, if the bulls fail to take out the latter, then the sellers could return, bringing Wednesday’s low of $2.19 back in play.
The bearish traders will once again aim for the 50-DMA support, now aligned at $2.07. Further south, the ascending 100-DMA at $1.73 will challenge the bullish commitments.
Solana Price Eyes A Pullback Before The Next Upswing Kicks In
Solana price has pulled back sharply from the new all-time highs at $220.57, having cleared the previous record highs of $215.08 reached on Tuesday.
SOL bulls were unperturbed by the broader market crash seen a couple of days ago and kept their record run intact, as the $250 target still remain on their sight.
The retreat in SOL price can be seen as a ‘buy the dip opportunity’ for traders, who feel FOMO, given an over 3000% surge since last August.
As predicted here, SOL price stormed through the roof after confirming a bull flag formation on a sustained break above the falling trendline resistance, then at $146.30.
However, it wasn’t a smooth sail for SOL bulls to conquer the $200 mark, as selling ensued just shy of the latter before the bulls fought back control.
The snapback from higher levels saw the 21-Simple Moving Average (SMA), then at $129.28, getting tested.
At the press time, SOL/USD is hovering around the $200 level, posting about a 3.5% loss over the past 12 hours.
The RSI has turned south from the extremely overbought region, pointing to further weakness in SOL price.
If the corrective decline gathers steam, a sharp drop towards the upward-pointing 21-SMA, currently at $147.23 could be in the offing.
SOL/USD: 12-hour chart
However, SOL bulls will remain hopeful so long as the 21-SMA support holds up.
Should the buying interest re-emerge a fresh upswing towards the $250 psychological level cannot be ruled.
Ahead of that SOL bulls will need to find acceptance above the lifetime highs near $220.
Check Out: Is Solana a Good Buy?
Shiba Inu: Bulls Testing Bearish Commitments, What’s Next?
The volatility around Shiba Inu remains unabated as we head towards the weekend, as SHIB price looks to extend the staggering recovery from yearly lows of $0.00000510 recorded on Tuesday.
Despite the recovery attempts, the bearish momentum doesn’t seem to have faded for SHIB price, as bulls lack follow-through amid the market’s apprehension about the canine-inspired coin.
As of writing, SHIB bulls are trying hard to gain a foothold above the horizontal 50-DMA at $0.00000717. It’s worth noting that SHIB price have failed to deliver a daily closing above the latter since Monday.
Therefore, it is imperative for the price to recapture the abovementioned critical upside barrier to pave the way for meaningful recovery from the multi-month troughs.
However, with the 21 and 100-DMAs bearish crossover around $0.00000750, SHIB bulls are likely to have a bumpy road to recovery.
If the bulls manage to defy the bearish odds, then Wednesday’s high of $0.00000820 will be on SOL buyers’ radars.
SHIB/USDT: Daily chart
The 14-day Relative Strength Index (RSI) has recovered sharply from lower levels but remains well below the midline, indicating that the recovery could a good opportunity to sell.
Therefore, a daily closing below the one-month-old rising trendline support at $0.00000659 could recall the sellers, exposing the horizontal (orange) trendline support at $0.00000552 yet again. That level will be the line in the sand for SHIB optimists.
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