Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: ADA Eyes $2 if This Key Hurdle Caves In
- Dogecoin remains exposed to downside risks while below 61.8% Fibo level on the 1D chart.
- Shib price remains trapped between two key barriers on the 12H chart, range breakout imminent?
- Cardano looks to extend the bullish reversal on the 4H chart on a firm break above 100-SMA.
The cryptocurrency market continues to experience a lackluster performance so far this week, in light of the previous week’s brutal crash and month-end readjustments.
The pioneer cryptocurrency, Bitcoin, fails to find a strong foothold above the $40K mark while Ethereum remains below $3000. The sluggish momentum has also spilled over the DeFi tokens, as they await a strong catalyst any significant market action.
China’s tightening its grip on crypto mining and reports that Iran following suit have exacerbated the pain for the market, as the bulls lick their wounds.
Meanwhile, reports that Dogecoin address DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L apparently holds nearly $12 billion worth of the digital currency continues to haunt the DOGE price, according to Bitinfocharts. Their holdings had touched $22 billion before the crash two weeks ago.
Shiba Inu, the ‘Dogecoin Killer’, also seems to take cues from the downbeat market mood, although it continues to gain popularity from investors.
In contrast, Cardano has managed to remain on the right footing, cheering comments from Cardano (ADA) founder Charles Hoskinson. When asked about ADA’s positioned relative to other so-called Ethereum killers, he said, “Well you know first off it's important Ethereum is killing itself, they're replacing Ethereum with Ethereum 2.0, so Ethereum 2.0 will kill Ethereum 1.0. So I think that's the Ethereum killer.”
How are these three trending DeFi tokens positioned on the technical graphs?
Dogecoin: Sellers remain hopeful while below 50-SMA, focus on Thursday’s close
After last week’s wild swings, Dogecoin has entered a phase of consolidation, as it hovers within Monday’s trading.
DOGE traders are biding time, in the aftermath of the recent shake-off, before placing fresh directional bets. So far this Thursday, DOGE price is down nearly 3.5% to trade above the $0.34 level.
For the third straight trading day, DOGE price remains locked between the 61.8% and 78.6% Fibonacci Retracement levels of the decline from all-time highs to the May 19 flash crash. Those levels align at $0.4110 and $0.3170 respectively.
Sellers returned after Dogecoin failed to find acceptance above the upward-sloping 50-daily moving average (DMA) at $0.3518, despite a daily closing above that barrier a day before.
With the 14-day Relative Strength Index (RSI) a tad weaker below the midline, the bias remains skewed to the downside for the DOGE bulls.
A daily closing below the 78.6% Fibo support is needed to resume the downtrend towards Sunday’s low of $0.2469.
On a failure to resist above the latter, powerful support around $0.1950 could come into play. That level is the confluence of the May 19 low and ascending 100-DMA.
DOGE/USD: Daily chart
Alternatively, a sustained break above the 50-DMA could call for a retest of the 61.8% Fibo resistance.
Further up, the bearish 21-DMA at $0.4505 could guard the additional upside.
Read Also: Will Dogecoin Make Me Rich?
Shiba Inu: Consolidating the downside before the next push southwards
Shib price is on a steady decline after an impressive bounce witnessed on Monday.
The sluggish price action in the canine-inspired coin could be associated with the overall market pessimism, as the bulls continue to lack conviction after Wednesday’s crash, the worst since March 2020.
Therefore, it may not be surprising if the Shib price extends the drop to test the fierce support around $0.0000070, where the bullish 100-simple moving average (SMA) coincides with the horizontal (orange) trendline support.
The bear cross, represented by the 21-SMA crossing over the 50-SMA earlier this week, backs the downside bias.
Meanwhile, the RSI trending listlessly below the central line also adds credence to a potential move lower.
It’s also worth noting that a breakout could be imminent, given that the range is getting squeezed each passing day.
SHIB/USDT: 12-hour chart
However, if the Shib bulls manage to yield a convincing break above the downward-sloping 21-SMA at $0.00001019, the price could see a fresh upswing towards the mildly bullish 50-SMA, now placed at $0.00001252.
At that point, Monday’s high surfaces and thus could be a tough nut to crack for the buyers.
Even the indicators on the shorter time frame continue to point south, as Shib price is trading around $0.00000908, marginally lower over the 12 hours.
Check Out: Could Shiba Be A Millionaire-Maker Coin
Cardano: Technical setup on the 4H chart remains in favour of the bulls
Cardano price has turned negative for the first time in four trading days, as the bulls appear to face stiff resistance near the $1.85-$1.86 zone.
In doing so, ADA/USD stalls its recovery rally from Sunday’s sell-off to $1.04310. Despite a pullback from higher levels, ADA bulls seem committed to taking on the upside, as well depicted by the four-hour technical graph.
At the moment, ADA price is challenging the critical horizontal 100-SMA barrier at $1.7719. The bulls are having a hard time clearing the said resistance on a sustained basis, as the price continues to battle the 100-SMA for the past 30 hours or so.
Should ADA price storm through that key level and sustain above it on a four-hourly candlestick closing basis, the buyers will see an extension of the bearish reversal from near the $1.05 region.
ADA price could then target the $2 mark if the buying interest accelerates.
The RSI has edged slightly lower but holds well above 50.00, suggesting that the bullish potential remains intact.
The multiple bullish crossovers on the given time frame also keep the sentiment around Cardano buoyed.
ADA/USD: Four-hour chart
On the flip side, immediate support is seen at the upward-pointing 21-SMA at $1.6234.
The next downside target is placed around $1.58, the confluence of the 50 and 200-SMAs.
All-in-all, the so-called Ethereum-killer remains on track to retest the $2 handle. However, it could likely be a bumpy ride for the ADA bulls amid dismal mood persisting across the crypto space.