Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: DOGE Bears Remain On Cruise Control

Last Updated July 23rd 2021
7 Min Read
  • Dogecoin bears gathering momentum to decisively yield a break below the critical 200-DMA support.
  • SHIB price is challenging key resistance area on its road to recovery as RSI remains in bearish zone.
  • Cardano remains exposed to further downside risks amid rising wedge breakdown on the 1D chart.
  • The granddaddy of cryptocurrencies, Bitcoin, is back at testing the crucial $30,000 support amid another selling wave engulfing the crypto market on Thursday. The no. 2 most favourite digital asset, Ethereum, has surrendered the $2000 mark once again.

    The underlying bearish theme in the pioneer crypto coin, amid shrinking volumes and uncertainty in the release of Grayscale shares, is boding ill for BTC as well as other altcoins. Adding to the downbeat tone, BlackRock CEO Larry Fink said the firm is seeing a lack of demand in Bitcoin from investors while China’s expansion of mining crackdown continues to dent the investors’ sentiment towards digital assets.

    For Dogecoin, the weakness could be attributed to the latest remarks from the meme-coin’s Co-Founder Jackson Palmer, as he slams the cryptocurrency, calling it an “inherently right-wing, hyper-capitalistic technology”. 

    Palmer tweeted out: “After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity.”

    Investors sold-off Shiba Inu in tandem with Dogecoin, in light of Palmer’s series of tweets, which went on to tell that the crypto market functioning, as it actually exists in the world, merely serves to help the rich get richer.

    Let’s take a look at how are these trending tokens positioned on the technical graph.

    Dogecoin: Bears testing bullish commitments at a critical support

    The DOGE bears are catching a breather this Thursday, consolidating near three-week lows of $0.1841 reached on Wednesday.

    The downtrend from the June 25 high of $0.2914 remains intact, with the sellers now gathering strength before resuming the next leg lower.

    In doing so, DOGE price confirmed a symmetrical triangle breakdown on the one-day chart following a daily closing below the rising trendline support at $0.2079 on Tuesday.

    The downside breakout called for a test of the mildly bullish 200-Daily Moving Average (DMA) support, now placed at $0.1771.

    With the 14-day Relative Strength Index (RSI) on a descent towards the oversold territory, currently, at 32.27, a test of the critical 200-DMA support remains inevitable.

    Selling pressure is likely to intensify should the DOGE bulls fail to resist the latter, exposing the next downside target at $0.1527, which is the June 22 low.

    Bears will then aim for the horizontal orange (dashed) trendline support at $0.1357, where the lowest levels since April 23 will match.

    DOGE/USD: Daily chart

    doge/usd daily chart

    On the other hand, if DOGE bulls manage to defend the 200-DMA support, then a rebound towards the triangle support-turned-resistance at $0.2102 could be in the offing.

    That level coincides with the actual triangle resistance as well, making it an important barrier.

    Up next, the downward-pointing 21-DMA at $0.2318 could challenge Dogecoin’s recovery momentum.

    The DOGE buyers would then target the downward-sloping 50-DMA at $0.2918, opening gates towards the $0.3000 round number.

    To conclude, the fate of DOGE optimists hinges on the 200-DMA cushion.

    Read Also: Will Dogecoin Make Me Rich In 10 Years?

    Shiba Inu awaits fresh impetus to resume the downside towards $0.000005202

    Tracking the price action of its canine-themed counterpart - Dogecoin, Shiba Inu also accelerates its bearish momentum, having hit the weakest levels since June 24 at $0.000006566 on Wednesday.

    A quick comeback, thereafter, offered little consolation to SHIB bulls, as the bears fought back control in Thursday’s trading so far.

    At the press time, Shib price trades just beneath the $0.0000070 level, shedding nearly 5% on the day amid a bearish momentum seen across the crypto board.

    From a short-term technical perspective, Shiba Inu is looking to reverse Wednesday’s rebound from three-week lows, in order to resume the downside triggered by a symmetrical triangle breakdown on the daily sticks earlier on.

    Doji candlestick formed a day before failed to deter the bearish commitments, as the pattern breakdown overpowers and keeps the downside opened towards the June 22 low of $0.000006326 (the horizontal dashed trendline support).

    However, the immediate cushion for SHIB bulls is seen at the multi-week troughs. The 14-day RSI points south while sitting just outside the oversold region, suggesting there is more room left for additional declines.

    A bear cross, represented by the 50-Daily Moving Average (DMA) cutting through the 21-DMA from above, offers hope to the SHIB sellers.

    SHIB/USDT: Daily chart

    shib/usd daily chart

    Alternatively, SHIB bulls need to recapture powerful resistance near $0.00000750 to unleash additional recovery gains. That level is the convergence of the ascending 100-DMA and triangle support now turned resistance.

    Further north, buyers could face strong offers around $0.0000080, where the 21 and 50-DMAs coincide. The triangle’s upside hurdle at $0.000009421 could guard the bullish attempts.

    Check Out: Is Shiba Inu (SHIB) A Good Buy?

    Cardano: Bears challenging this support level, as 200-DMA beckons

    Cardano price remains in the red zone for the fourth straight session on Thursday, although keeps its recent range trade intact between             $1.17 and $1.34.

    The selling interest around the fifth most widely traded crypto coin remains unabated so far this week, as ADA price sheds about 3% on a daily basis while down nearly 10% over the week.

    Currently, ADA/USD is hovering around $1.2250, consolidating the downside, as it awaits a strong catalyst to trigger a fresh downswing.

    Looking at it technically, ADA price has entered a phase of bearish consolidation after decisively breaking lower from a three-week-long rising wedge formation.

    The Relative Strength Index (RSI) is making headways to probe the oversold zone but still has little scope for ADA sellers to relish extra losses.

    Therefore, a renewed spurt of selling zest could lead to a breakdown of the horizontal (dotted) trendline support at $1.1742, which acts as an immediate line of defense for ADA bulls.

    The next relevant target for the sellers is envisioned at $1.1234, which is the intersection of the upward-sloping 200-DMA and the June 23 low.

    The June 22 downward spike at $0.9891 would be the line in the sand for Cardano’s bullish traders.

    ADA/USD: Daily chart

    ada/usd daily chart

    On the flip side, the ADA bulls need to crack this fierce barrier at $1.3387, the confluence of the 21-DMA and the wedge support-now-resistance.

    Only a daily closing above the latter could reinforce the buying interest, which may initiate a meaningful recovery towards the bearish 50-DMA at $1.45.

    All in all, the downside appears more compelling for ADA price in the near term.

    Don't Miss: What Will Cardano ADA Be Worth in 10 Years?

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