Top 3 Trending Cryptocurrencies Dogecoin, Cardano, Stellar: DOGE aims for new highs above this key hurdle
- Dogecoin bulls remain hopeful amid higher highs on the 4H chart whilst above this key support.
- Cardano risks a run to the downside, with technical indicators turning bearish on the 4H chart.
- Stellar bulls looking for conviction above 61.8% Fibo level as it defends 21-DMA support for now.
As cryptocurrencies continue to receive institutional backing, Bitcoin attempts another run towards $60,000 while Ethereum conquered the $3,000 mark for the first time on record.
The renewed optimism has gripped the crypto space, although some of the DeFi tokens, including Dogecoin, Cardano and Stellar Lumens, show similar upward traction.
Amongst the above three, Dogecoin looks more promising, in light of the latest news that the the popular online trading platform eToro will offer the cryptocurrency to its more than 20 million registered users worldwide.
The announcement pushed Dogecoin’s market capitalization back above $50 billion, implying that the meme-based coin is valued higher than the US automaker Ford Motor Company ($45.2 billion) and social media giant, Twitter ($44.1 billion).
Meanwhile, the DOGE bulls seemingly await a tweet from the founder of Tesla Inc. Elon Musk, the Dogefather, for another bump going forward.
However, Cardano appears to be threatened by the surge in Ethereum while Stellar appears at an inflection point after the recent recovery rally.
How are these three hot DeFi tokens positioned technically?
Dogecoin consolidates the upside, as the buyers work towards the next leg higher
The celebrities-favourite digital asset, Dogecoin is looking to build on Sunday’s bounce, as it tackles the $0.40 mark after ending last week on a high note.
The Defi token staged a solid reversal last Thursday, which set the stage for fresh two-week highs recorded earlier this Monday at $0.4117.
The DOGE bulls are once again well positioned to take on the $0.50 barrier once this critical resistance on the four-chart is cracked convincingly.
That level is the horizontal (orange) trendline resistance, connecting previous highs at $0.4221.
On the said time frame, the price continues to form highs after a brief consolidative stint, keeping the bullish potential intact.
If Dogecoin closes the four-hour candlestick above the aforesaid static resistance, then the bulls could gather strength to challenge the record highs at $0.4706 on its way to the $0.50 level.
The Relative Strength Index (RSI) points north just beneath the overbought territory while a bull cross confirmed a day before also adds credence to the move higher.
The bullish crossover, in this case, is represented by the 50-simple moving average (SMA) piercing through the 100-SMA from below.
DOGE/USD: Four-hour chart
Alternatively, Doge bears will test the critical support at $0.3613 should the price face rejection once again above $0.40.
That demand area comprises of the bullish 21-SMA and the horizontal trendline, which is formed by the recent lows.
A sustained break below that critical support could likely trigger a drop towards the next cushioned aligned at $0.3182 – the upward-sloping 50-SMA.
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Cardano: Teasing an ascending triangle breakdown on the 4H chart amid a bear cross
Cardano is showing some signs of life on Monday after two straight sluggish sessions, although the bears are unlikely to give in easily, as portrayed by the four-hourly chart.
The ADA price remains confined well within the April 30th trading range, lacking a clear directional bias.
Note that ADA/USD is trading within an ascending triangle formation, with higher highs while the upside attempts face stiff resistance around the $1.4120 region.
At the time of writing, Cardano is on the verge of an ascending triangle breakdown, as it teases the rising trendline support at $1.3284.
A four-hourly candlestick closing below is required to validate the downside break, which will open floors towards the upward-sloping 50-SMA near $1.30.
The confluence zone of the 100 and 200-SMAs around $1.2593 will test the bearish impulse if the selling pressure intensifies.
The RSI has taken a U-turn and edges towards the midline, suggesting weakening bullish commitments.
Additionally, with the 100-SMA having crossed below the 200-SMA, the downside appears more compelling. The above pattern has validated a bear cross earlier this morning.
ADA/USD: Four-hour chart
However, if the ADA bulls manage to defend the abovementioned triangle support, an extension of the bounce above the 21-SMA at $1.3430 is likely.
The price needs acceptance above $1.3800 is critical to negating the near-term downside bias.
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Stellar: Bullish exhaustion building up on the daily chart as 61.8% Fibo level gets tested
XLM/USD has stalled its three-day winning streak on Monday, as the bulls appear to face some exhaustion after hitting the highest levels in two weeks at $0.5834 earlier in the Asian session.
However, Stellar failed to sustain at higher levels and fell to the lowest point of the day at $0.5329 before rebounding to near $0.5575, where it now wavers.
The two-way businesses witnessed so far this Monday have left the price almost unchanged on the day, although it has managed to recapture $0.5526, the 61.8% Fibonacci Retracement level of the slide from the lifetime highs to the April 23 low of $0.3155.
Stellar’s price action has formed a Doji candlestick on the given time frame, suggesting market indecision.
As clearly observed on the daily chart, the XLM price range is getting tighter, keeping traders hopeful for some volatility in the coming sessions.
The 14-day RSI has turned flattish but holds comfortably above the central line, keeping the buyers hopeful.
The bulls could target the 78.6% Fibo level of the same descent at $0.6166 if the 61.8% Fibo support is maintained.
Ahead of that level, the $0.60 round figure could pose a threat to the bullish traders.
XLM/USD: Daily chart
On the flip side, the XLM bears could test the horizontal 21-DMA support at $0.5296 if the 61.8% Fibo level caves in on a daily closing basis.
Further south, $0.5075 is expected to emerge as the last line of defense for the XLM optimists. At that point, the 50% Fibo level is aligned.
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