Top 3 Trending Cryptocurrencies, Dogecoin, Cardano, Shiba Inu: DOGE Price Defends $0.19 But For How Long?
- Dogecoin price is defending the falling wedge support but downside bias remains intact.
- The path of least resistance appears south for Cardano price amid health resistance levels.
- Shiba Inu returns below all major averages on the 1D chart but 38.2% Fib level lends strong support.
The crypto market is a mixed bag, as the widely traded digital assets recoil from the China-led blow while digesting some encouraging news that Twitter has open a way for its users to send and receive tips in Bitcoin.
Bitcoin is heading back towards the 200-Daily Moving Average (DMA) at $45,500 while Ethereum staged a solid comeback above $3100.
However, the trading sentiment around the DeFi tokens is improving but the bulls remain sceptical amid persisting China power supply concerns and ahead of the US infrastructure bill vote.
There seems to be a ray of hope for DOGE buyers, as AMC Entertainment Holdings adopted DOGE as a payment method. Also, expectations of a reduction in transaction fees could help staged a comeback. But the technical setup on the daily chart suggests otherwise.
Let’s see how are Dogecoin, Cardano and Shiba Inu positioned on the technical graphs.
Dogecoin price consolidates before the next move lower
DOGE price is pressuring the lower boundaries of the recent trading range, having stalled its recovery attempts from seven-week troughs of $0.19 reached last Tuesday.
The selling momentum in DOGE price re-emerged after the bulls failed to find a strong footing above the $0.23 threshold.
The meme-based coin has kicked off a brand-new week on the wrong footing, currently hovering around $0.2050, virtually unchanged on the day.
From a near-term technical perspective, DOGE price continues to find fresh bids at the critical support line of a falling wedge pattern at $0.1930.
The falling wedge pattern has been in the making after DOGE price topped out near the $0.3550 region in mid-August.
The failed pullbacks in DOGE price only show that the downside remains intact, as the wedge support remains at risk.
The 14-day Relative Strength Index (RSI) keeps heading lower below the midline, allowing room for more declines in the sessions ahead.
The bear cross, represented by the 21-Daily Moving Average (DMA) having crossed the ascending 200-DMA and the falling 100-DMA from above, adds credence to a potential move lower.
A daily closing below the wedge support will open floors towards the July lows of $0.1594. Ahead of that the August lows at $0.1814 will be on DOGE sellers’ radars.
DOGE/USD: Daily chart
On the flip side, should the $0.1930 demand area hold up, DOGE bulls could stage a fresh rebound towards the downward-pointing 21-DMA at $0.2319, where the previous week’s highs hover.
DOGE bulls will then seek acceptance above the 100-DMA at $0.2425 en-route its recovery towards the critical 200-DMA at $0.2553.
Recapturing the latter could negate the bearish bias in the near term.
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Cardano price remains capped by a wall of resistances, as $1.85 beckons
Cardano price is feeling the pull of gravity this Monday after facing rejection once again at near mid-$2s.
ADA/USD is losing conviction, as the recovery momentum fades, despite holding onto the $2 psychological mark.
The third most favorite crypto coin is trading modestly flat, as of writing, trading at $2.20, awaiting fresh trading impetus amid subdued crypto markets.
Meanwhile, Cardano’s daily chart shows that ADA price continues to run into stiff resistance at the upside hurdle of a three-week-old falling wedge formation.
That level around $2.45 appears as a powerful resistance, where the 21-Daily Moving Average (DMA) and 50-DMA intersect.
The upside breakout from the falling wedge will come into effect only on a sustained break above the latter, calling for a test of intermittent resistance near $2.80.
The next significant barrier is envisioned at a $3-round figure, as ADA bulls will remain on track to challenge the all-time highs of $3.16.
ADA/USD: Daily chart
However, with the 14-day Relative Strength Index (RSI) keeping its range below the 50.00 level, a breach of $2 psychological support remains inevitable.
The 21-DMA cut the 50-DMA from above on Saturday, confirming a bear cross, which further backs the case for additional weakness in ADA price.
If the selling pressure intensifies, then a fresh downswing towards the $1.85 level will be initiated. That level is the convergence of the falling trendline (wedge) support and mildly bullish 100-DMA.
The all-important 200-DMA at $1.64 could come to the rescue of the ADA optimists.
Shiba Inu needs to crack this key level to pave the way for further downside
Shiba Inu is snapping the three-day bearish momentum on Monday, although seems like a dead cat bounce amid a sense of caution prevailing across the crypto board.
In doing so, SHIB price remains in a consolidative mode, stalling the corrective pullback from three-month tops of $0.00000950.
SHIB price is posting marginal gains while keeping its range above $0.0000070, licking its wounds after the recent downtrend.
The meme-based coin bounced off the pivotal support at $0.00000676 once again, which is the 38.2% Fibonacci Retracement (Fib) level of the recovery from the September 7 lows of $0.00000510 to the three-month tops of $0.00000950.
Meanwhile, the critical 61.8% Fib level at $0.00000781, guards the upside, driving DOGE price back below all the major Daily Moving Averages (DMA).
At the momentum, the 14-day Relative Strength Index (RSI) is flatlined below the central line, suggesting that the rebound could be a short-lived affair.
Therefore, the abovementioned 38.2% Fib level remains at risk should the selling interest resurge.
A daily closing below the latter is needed to expose the 23.6% Fibo level of the same advance at $0.00000612. That level will be the last saviour for the SHIB buyers.
SHIB price would resume the double top bearish reversal from near $0.00000950 levels if the 23.6% Fib support caves in.
SHIB/USDT: Daily chart
On the other hand, immediate resistance is aligned at the 50% Fib level at $0.00000729, where the 21-DMA closes in.
The 61.8% Fib level at $0.00000781 will be a tough nut to crack on the acceleration of the upside momentum.
SHIB buyers will then target $0.00000855, the 78.6% Fib level. Only a firm break above the latter could revive the uptrend towards $0.00000950.
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