- Dogecoin’s over 500% bull run likely to continue on a sustained break above $0.4539, record highs.
- Risks remain skewed to the downside for Cardano after the rising wedge breakdown on the 12H chart.
- 50-DMA support keeps the Stellar bulls hopeful after the recent crash, RSI has turned bearish.
The bears are back in control this Monday after consolidating Saturday’s meltdown across the crypto markets. Bitcoin has stalled its recovery momentum after the 14% crash and falls back towards the $54,000 level.
Meanwhile, XRP/USD has lost another 8% in today’s trading so far, putting $1.30 at risk once again. The Defi tokens are also feeling the pull of gravity amid a resurgence of supply across the board.
The catalyst behind the weekend’s crash in Bitcoin, which sent the market into a tailspin, could be partly attributed to the rumours of the US treasury charging several financial institutions for money laundering using cryptocurrency emerge.
Some industry experts believe that China’s Xinjiang province, known for Bitcoin mining, suffered an electrical grid blackout, which caused Bitcoin’s hash rate to decline, in turn triggering a collapse in the price of BTC.
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.
On the other hand, the Shibu Inus-inspired digital asset, Dogecoin, remains buoyed by the continued interest from Tesla’s founder Elon Mush and Mark Cuban.
How are these trending cryptocurrencies positioned on the technical graphs?
Dogecoin: Ascending Triangle Formation Spotted on the 4H Chart Keeps the Buyers Hopeful
DOGE/USD extends its uptrend into the second straight day on Monday, having reversed a crash witnessed on Saturday.
The 560% parabolic surge in Dogecoin kicked off from April 12, as the price reached an all-time-highs of $0.4539 on Friday before correcting sharply to near the $0.23 region.
At the time of writing, the DOGE/USD pair is trading around $0.3760, looking to recapture the $0.45 barrier.
The recent massive volatile price action in Dogecoin has taken the shape of an ascending triangle on the daily chart. The ascending triangle is usually considered as a bullish continuation pattern, which keeps the buying interest alive.
Adding credence to the bullish undertone, the 14-day Relative Strength Index (RSI) has edged lower but remains well above the central line, currently at 65.05.
A four-hour candlestick closing above the lifetime highs is needed to validate the bullish pattern, opening doors towards the $0.50 psychological level.
The bulls would then aim for the pattern target measured at $0.6780. Although the coin would need to crack the $0.60 round number, in order to march towards the ultimate goal.
DOGE/USD: Four-hour chart
On the flip side, defending the triangle support at $0.3302 is critical to maintaining the upside bias.
Acceptance below that level will confirm a downside break from the triangle, with immediate support seen at $0.3187.
The next significant cushion for the DOGE buyers is envisioned at the April 17 low of $0.2298.
Read More: Is Dogecoin a Good Investment?
Cardano: A Test of 200-SMA at $0.9175 on the 12H Chart Remains in the Offing Amid a Bearish Setup
Cardano is nursing losses around $1.24, having found some support at $0.20 so far this Monday. The ADA bears take a much-needed breather after witnessing a 30% crash in the past four trading sessions.
On Sunday, the so-called Ethereum-killer fell to the lowest level in three weeks at $1.0422, as the broader market sell-off exacerbated the pain in the ADA coin.
Despite a pullback seen over the last 36 hours, the downside momentum remains intact for Cardano, as a rising wedge breakdown has already been confirmed a day before.
Further, the RSI points south at 43.52, suggesting that there is more room for the sellers to extend their control.
As of writing, the ADA/USD pair is holding well above the 100-SMA support, now placed at $1.2083 although the recovery appears capped at the horizontal 21-SMA at $1.3263.
With the technical setup still favouring the downside, a sustained move below the 100-SMA could trigger additional sell-off towards the three-week troughs.
If the bears remain in total control, a further leg down towards the upward-sloping 200-SMA at $0.9175 cannot be ruled out.
ADA/USD: 12-hour chart
Alternatively, should the buyers find a foothold above the 21-SMA cap, the recovery rally towards the $1.50 strong hurdle could be inevitable.
The next stop for the ADA bulls is aligned at the record highs of $1.5615.
Check Out: Cardano Price Prediction 2021-2024
Stellar: Looks to Test the 50-DMA Support Once Again as Four-day Losing Streak Extends
XLM/USD’s nearly 30% collapse comes as no surprise, especially after a price-RSI negative divergence was spotted last Thursday.
The sell-off that began from Friday from record highs of $0.6983 paused at $0.4484 on Sunday, where the 50-daily moving average (DMA) coincides.
The XLM bulls staged a solid comeback and recaptured $0.5155, the 50% Fibonacci Retracement (Fibo) level of the relentless rise from March 25 low of $0.3328 to the record highs printed on April 14, on a daily closing basis.
However, the sellers regained poise on Monday and breached the said support once again, exposing the 61.8% Fibo level of the same rally, which currently stands at $0.4725.
A breach of the last could bring the 50-DMA support back in play. The 14-day RSI has pierced through the midline, now hovering in the bearish zone near 49.00 while advocating a potential move lower.
XLM/USD: Daily chart
Any corrective pullback would warrant a daily close above the 50% Fibo level, which could prompt the XLM bulls to challenge daily highs at $0.5728.
Stellar needs to crack the key $0.60 hurdle, in order to fuel another record run.
All in all, the downside appears more compelling, as the XLM bears gear up for a breach of the powerful 50-DMA support.
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