Top 3 Trending Cryptocurrencies Dogecoin, Cardano, Stellar: DOGE bulls face exhaustion before recapturing $0.08
- Dogecoin consolidates Sunday’s spike while keeping its sight on the $0.10 mark amid favourable technicals.
- Symmetrical triangle breakout on Cardano’s 1D chart calls for further upside, with a quest for $1.50 extends
- Stellar’s daily chart suggests that there may be room to rise but RSI warrants caution for the bulls.
Bears have tightened their grip on Monday, as the weekend’s sizzling performance across the crypto board fizzles out.
The granddaddy of cryptocurrencies, Bitcoin, is well off its record highs while the DeFi tokens, including, Dogecoin, Cardano and Stellar, are consolidating the recent upsurge.
The Shibu Inus-inspired digital asset, Dogecoin, rallied over 20% in 24 hours, once again cheering the endorsement from the SpaceX CEO Elon Musk.
Musk tweeted out on Saturday, “….going to moon very soon.” The term “to the moon” usually implies that the asset prices are envisioned to rise dramatically. And considering that Dogecoin remains Musk’s favourite, traders stocked up large quantities of the meme-based coin, ramping its price to near the $0.08 mark.
Looking at Cardano’s on-chain metrics, the path of least resistance appears to the north. The IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model for ADA/USD shows that the bulls face would only one strong upside barrier around $1.32, where roughly 15,000 addresses purchased nearly 200 million ADA.
Meanwhile, for Stellar, the funding rates are significantly overextended across all big exchanges, per Viewbase metrics. Higher funding rates remain a cause for concern for the XLM buyers, especially at a time when the price has surged over 50% in recent weeks.
How are these trending cryptocurrencies positioned on the technical graphs?
Dogecoin: A Potential Bull Flag on the 4H Chart Keeps the Buyers Hopeful Despite the Pullback
DOGE/USD’s stellar performance over the weekend failed to sustain on Monday, as the bulls appear to be facing some exhaustion before it resumes their uptrend.
The DOGE bears step in, as investors remain worried that Sunday’s 26% upsurge could fizzle out soon just as Tesla Inc’s founder Elon Musk’s tweet-led 20% spike did a week ago.
However, the meme-based coin’s near-term technical picture seems to have a different story to tell.
Monday’s pullback that followed the latest rally has taken a shape of a bull flag, a bullish continuation pattern, on the four-chart.
The DOGE bulls now await a four-hourly candlestick closing above the falling trendline resistance at $0.0728, in order to confirm a bull flag breakout.
The Relative Strength Index (RSI) edges lower but holds well above the 50.00 level, keeping the bullish bias intact.
If the upside break gets confirmed, a retest of the two-month highs at $0.0780 remains inevitable.
The next goal for the bulls awaits at the record highs of $0.0841. On its way to $0.10, the coin could challenge the pattern target measured at $0.0898.
DOGE/USD: Four-hour chart
Alternatively, should the price close the four-hourly candlestick closing below the falling trendline support at $0.0689, the bull flag formation will get invalidated.
The sellers will then aim for a test of the bullish 21-simple moving average (SMA) at $0.0668.
Further south, the positively inclined 50-DMA at $0.0627 would be the last line of defense for the bullish traders.
Check Out: Is Dogecoin a Good Investment?
Cardano: Bulls Gathering Strength for Another Rally Towards $1.64 as Technical Setup Screams Buy
Cardano extends its winning streak into the third straight day on Monday, having met some strong demand around the $1.18 region.
The ADA/USD pair finally broke the recent range trade to the upside on Sunday. The bulls are looking to build on the rally, awaiting acceptance above the static resistance around $1.30.
Such a move appears likely given that the coin has confirmed a symmetrical triangle breakout on the daily chart a day before.
The price finished the day above the falling trendline resistance at $1.2545.
The 14-day RSI points north, currently at 59.82, suggesting that there is additional scope to the upside. Also, the fact that the spot trades above all the major averages adds credence to the view of another leg higher.
Therefore, a firm break above the $1.30 round figure could challenge the monthly highs of $1.3214.
The psychological $1.50 mark will challenge the bullish commitments, as the pattern target measured at $1.6413 remains in sight.
ADA/USD: Daily chart
However, if the ADA bulls fail to find a foothold above the $1.30 level then a retracement towards the pattern resistance now support at $1.2505 could be in the offing.
The next support is aligned at Sunday’s low of $1.2031, below which the $1.1920 critical cap will be the level to beat for the ADA bears.
That level is the confluence of the pattern support and the upward-sloping 21-daily moving average (DMA).
Stellar: In a Bullish Consolidation Phase after the Big Technical Breakout, $0.5477 Support Holds the Key
After two consecutive days of solid gains, the XLM bulls have turned on the sidelines, as they await a strong catalyst for the next push higher.
Amid the pullback from higher levels, Stellar’s daily chart signals caution for the optimists amid a negative price-RSI divergence.
This is represented by the spot forming higher highs on the said time frame while the RSI shows a descent.
Investors, therefore, believe that a top could be very well in place for XLM/USD after it hit an all-time-highs at $0.6424 on Sunday.
Note that the price rallied hard to fresh record highs after a cup and handle breakout got confirmed on Saturday.
The upside break received credence from the 21 and 50-DMA bullish crossover confirmed last week.
XLM/USD: Daily chart
With the tide turning in favour of the XLM bears, a test of the pattern neckline at $0.5477 is likely.
Acceptance below the latter could trigger a sharp sell-off towards the $0.50 psychological threshold.
The upward-pointing 21-DMA at $0.4505 could be the line in the sand for the XLM buyers.
However, if the pattern neckline support holds, a bounce-back towards the $0.60 mark could be on the cards.
The bulls could then challenge the lifetime highs, reviving the bullish momentum.