Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: DOGE Remains Vulnerable Below This Key Level

Last Updated August 2nd 2021
6 Min Read
  • Rejection near $0.22 leaves Dogecoin price vulnerable amid bearish daily technical indicators.
  • Falling wedge hurdle on the 1D chart offers stiff resistance to SHIB price, as RSI remains bearish.
  • Cardano price awaits a range breakout while pivoting around 50-DMA, upside break appears likely.

The crypto market is seeing a fresh green wave on Monday, but it doesn’t seem to convince Bitcoin bulls, as BTC price continues to meander below $40,000. Ethereum is accelerating its bullish momentum above $2600 ahead of the August 4 London Hard fork.

The DeFi tokens are also taking positive cues from the renewed upbeat momentum across the crypto board, although the fundamental and technical factors seem to contradict the latest uptick.

For Dogecoin, the on-chain metrics point to a potential downside in the prices, as the IntoTheBlock’s Global In/Out of the Money (GIOM) model shows that about 144,000 addresses purchased 14.84 billion DOGE at an average price of $0.201. A daily closing below that level could trigger a fresh sell-off, as it would render the optimists ‘Out of the Money’.

Meanwhile, the so-called ‘Dogecoin Killer’, Shiba Inu, fails to take advantage of the recent e-Toro listing, as ShibaSwap DEX erodes 75% of its total value locked in less than 20 days.

However, Cardano price is outperforming amid news that EMURGO, a founding entity of ADA, launched a new platform that will bridge the interaction between ADA users and decentralized applications (dApps) on the blockchain network.

Let’s take a look at how these three coins are positioned technically.

Dogecoin: Impending bear cross hints at a potential sell-off

Dogecoin price is alternating between gains and losses so far this Monday, having kicked off August on a negative note.

DOGE price lacks a clear directional bias while wavering around $0.2050, as of writing, extending its choppy trading into the seventh straight day after topping out on July 26 at $0.2426.

The meme-based coin has lost roughly 13% since then, but remains in a tight band, with the upside guarded near the $0.2260 region.

That supply zone comprises the bearish 50-Daily Moving Average (DMA) and 50% Fibonacci Retracement level of the slide from July 25 high to July 20 low.

Meanwhile, the confluence of the 21 and 200-DMAs at $0.1948 keeps the downside limited. 

From a near-term technical perspective, the downside appears more compelling for DOGE bulls, as the price has failed to yield a daily closing above $0.2097, the 61.8% Fibonacci level of the same decline, since July 12.

Further, the 200-DMA is on the verge of cutting the 21-DMA from below, which could potentially confirm a bear cross, signalling a fresh downswing.

Adding credence to the bearish outlook, the 14-day Relative Strength Index (RSI) remains sluggish below the central line.

DOGE/USD: Daily chart

DOGE/USD daily chart 080221

A sustained close below the $0.1948 support could bring the 78.6% Fibonacci level at $0.1876 back in play.

The downside will accelerate below the latter, with a sell-off towards the swing (July 20) low of $0.1593 inevitable.

To conclude, the technical indicators on the daily time frame scream sell for Dogecoin price.

Read Also: 5 Reasons Why Dogecoin Could Double Your Money

Shiba Inu risks further falls following rejection at higher levels

Shiba Inu is defying upbeat fundamental news, as technicals overpower, leaving the price at crossroads. The mixed sentiment seen across the crypto market is also doing little to provide any impetus to the SHIB price.

SHIB price returns to the red on Monday after witnessing two consecutive days of gains, as the bulls continue to battle stiff resistance at the powerful falling wedge hurdle, now at $0.00000623.

Note that SHIB price has been trading within a falling wedge formation since early July, awaiting a daily closing above the said resistance to confirm the upside breakout.

On Sunday, the canine-inspired coin tested that upside barrier but failed to find acceptance above it, reviving the selling interests.

Even after the wedge breakout is validated, the SHIB bulls will need to find a strong foothold above the descending 21-Daily Moving Average (DMA) at $0.00000648.

SHIB buyers will seek fresh entries above the 21-DMA cap, calling for a test of the horizontal 50-DMA at $0.00000731.

SHIB/USDT: Daily chart

SHIB/USD daily chart 080221

On the flip side, the $0.00000590 range lows (dashed horizontal trendline) will cushion the immediate downside.

Further south, the falling trendline support at $0.00000452 could be challenged should the pullback gain traction.

The 14-day RSI still holds below the 50.00 threshold, keeping SHIB bulls at bay.

Check Out: What Will Shiba Inu (SHIB) Be Worth in 10 Years?

Cardano price eyes a sustained move above 50-DMA

Having witnessed massive volatility last Friday, Cardano price has continued to sway in either direction amid mixed news coming in from the cryptocurrencies space.

However, ADA bulls picked up strength and looked to regain the $1.40 barrier but failed miserably, settling the day marginally lower, clinging on to the 50-DMA at $1.3159.

At the press time, ADA price is attempting to recover ground above the 50-DMA once again, as it adds about 1% on the day.

The 14-day RSI is also supportive of the additional upside, edging higher towards the overbought region. The leading indicator currently trades at 56.11, keeping the bulls alive and kicking.

Acceptance above the 50-DMA barrier on a daily closing basis could allow ADA bulls to flex their muscles towards the $1.40 round number.

The August 1 highs at $.4089 could then test the bullish commitments, as the altcoin remains on track to challenge the critical horizontal 100-DMA cap at $1.4560.

ADA/USD: Daily chart

ADA/USD daily chart 080221

On the other hand, if the bears fight back control below the 50-DMA, then the next downside target is envisioned at the 21-DMA, now at $1.2309.

The ascending 200-DMA at $1.2109 could come to the immediate rescue of ADA bulls on a downward spiral.

Don't Miss: Why Cardano Will Skyrocket

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