Top 3 Trending Cryptocurrencies Dogecoin, Cardano, Stellar: ADA Eyes $0.9450 If This Key Support Breaks

Last Updated July 23rd 2021
6 Min Read
  • Dogecoin buyers losing conviction, not yet? Bargain hunters wait for a drop to $0.2315 demand area.
  • Cardano trapped in the lower bound of the ascending triangle on the 12H chart, bearish bias intact.
  • Stellar eyes a break below 200-SMA on the 4H chart to resume the downtrend towards $0.41.
  • A green wave has captured the crypto market this Thursday after a sluggish start to this week. The upbeat momentum is driven by a 10% rally in Ethereum, as the No. 2 coin clinches fresh record highs just shy of the $2600 mark.

    The pioneer cryptocurrency, Bitcoin has also regained upside traction, with the bulls looking to recapture the $55,000 level. However, some of trending DeFi token seems to be little impressed by the resurgent demand.

    For Dogecoin, the 35% pullback after the much-hyped ‘dogeday420’ has stalled for now. Although the upside attempts are likely to get sold-off into bearish fundaments. The Shibu Inus-inspired coin’s IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that significant resistance appears at $0.32, where nearly 47,000 addresses have purchased 12.63 billion DOGE.

    The fundamentals underlying the hot DeFi tokens, including Cardano, also remain in favour of ongoing bearish momentum. Long-term investors appear to be losing confidence in bullish ADA bets, as they liquidate their long positions, the on-chain metrics show. The long-term investment in ADA dropped to 12% so far this April when compared to 53.8% seen in April 2020.  

    Meanwhile, the demand for Cardano is likely threatened by the record run in Ethereum, although the technical setup continues to favour the downside momentum.

    How are the top three trending cryptocurrencies positioned on the charts?

     

    Dogecoin: Bearish RSI on the 4H chart Keep the Downside Exposed but How Low Can it Go?  

    DOGE/USD appears to have entered a phase of downside consolidation after the three straight days of losses.

    Although the pause in the sell-off only looks like a breather for the bears. Additional scope to the downside persists before the bulls could attempt a comeback.

    This is well portrayed by Dogecoin’s four-hour chart. At the time of writing, the meme-inspired coin is trying hard to recover ground above the upward-sloping 50-simple moving average (SMA) at $0.2861, which was earlier critical support.

    The bounce is backed by the Relative Strength Index (RSI), which has recovered from lows as well.

    However, the indicator still remains in the bearish territory, suggesting that the sellers are likely to fight back control.

    A drop towards the horizontal (orange) trendline support at $0.2315, which marks a significant demand area, cannot be ruled out.

    If the abovementioned level gives way, the sellers could then aim for the ascending 100-SMA at $0.1778.

    Bargain hunters target this crucial confluence zone around $0.1165 to seek entry, which could likely prompt a bullish reversal in the DOGE price.

    That level is the intersection of the horizontal (black) trendline support and the mildly bullish 200-SMA.

    DOGE/USD: Four-hour chart

    doge/usd price chart

    On the flip side, a four-hour candlestick close above the 50-SMA barrier could fuel additional recovery gains.

    The daily highs of $0.3041 could offer immediate resistance. The next upside goal for the DOGE bulls awaits at the 21-SMA, now at $0.3386.

    Check Out: How to Buy Dogecoin - Beginner’s Guide

     

    Cardano: Bears await an Ascending Triangle Breakdown as the Downside Consolidation Extends

    After last week’s crash, Cardano sellers are biding time before the next significant sell-off consumes the market.

    As observed on the 12 chart, the Cardano price has faced rejections on several occasions at $1.50 over the past two months, making it a critical hurdle.

    Meanwhile, the ADA bulls have managed to come back strongly, mostly represented by timely spikes after the sell-offs, forming higher highs on the said time frame.

    This price action has carved out an ascending triangle, with the ADA price now challenging the lower boundary of the triangle over the past few session, seen at $1.16. 

    The odds remain in favour of a potential down move, as the price faces a bunch of healthy resistance levels.

    More importantly, the RSI continues to trade below the central line, which suggests that the risks remain skewed to the downside for the token.

    A 12-hour candlestick closing below that aforesaid triangle support could confirm a downside break, exposing the April 17 low at $1.0421.

    Further south, the rising 200-SMA at $0.9454 could be the line in the sand for the ADA buyers.  

    ADA/USD: 12-hour chart

    ada/usd price chart

    To the upside, the bulls need a sustained break above the horizontal 50-SMA at $1.2550, in order to extend the recovery momentum towards the $1.30 round number.

    The bullish commitments could be then challenged by the critical short-tern 21-SMA at $1.3209.

    Until the latter is taken out, the bearish bias will remain intact.

    Don't Miss: Is Cardano Worth Buying

     

    Stellar: 21-SMA Limits the Upside Amid an Impending Bearish Crossover and RSI

    XLM/USD is testing the lower band of this week’s trading range around $0.50.

    Any bullish follow-through attempts seem to lack momentum, as the short-term technical graphs continue to paint a gloomy picture.

    Looking particularly at the four-hour chart, the XLM price is trading in a tight range between the downward-sloping 21-SMA and the horizontal 200-SMA.

    The confined movement between the two key averages since April 17 has naturally taken the shape of a descending triangle.

    The range is getting tighter with each passing four-hour candlestick and therefore, a range breakout could be in the offing.

    The momentum remains in favour of the XLM sellers, as the 50-SMA is on the brink of cutting through the 100-SMA from above, representing a bear cross.

    Further, the RSI has turned flat but remains within the bearish zone, allowing room for more declines.

    Therefore, acceptance below strong 200-SMA support at $0.4801 could aggravate the pain in the bulls.

    An additional downside could then open up towards the horizontal (orange) trendline support at $0.41, where the bulls are expected to make a fresh entry.

    XLM/USD: Four-hour chart

    xlm/usd price chart

    Alternatively, closing above the 21-SMA at $0.5055 is needed to alleviate the bearish pressures for the time being.  

    It’s worth noting that the XLM price has not seen a four-hourly candlestick closing above the 21-SMA since April 20.

    The next supply zone is envisioned between the 100 and 50-SMAs around the $0.5565 region.

    Read More: Could Stellar Be A Millionaire-Maker Coin?

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