Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: SHIB Price Eyes 50% Downswing
- Shib price’s remains poised for a massive downswing if this key daily trendline support yields in.
- Dogecoin eyes a drop towards $0.2400 after a symmetrical triangle breakdown on the daily chart.
- Cardano keeps its sight on the 200-DMA amid a bearish technical setup, a test of 200-DMA on the cards?
As the granddaddy of cryptocurrencies, Bitcoin, nears the May 19 flash crash low of $30,303, market participants refrain from placing aggressive bets across the board. Ethereum challenges $2400 support, as a critical technical indicator turns bearish for the first time since October.
The bearish spell has translated onto the DeFi tokens, with Dogecoin, Shiba Inu and Cardano holding favourites for the pessimists. The main catalysts behind the downbeat mood across the crypto space could be attributed to the Fed’s tightening expectations and China’s latest crackdown measures.
DOGE traders remain cautious, especially after Tesla Inc.’s founder Elon Musk tweeted a picture of bitcoin with broken heart emoji, which triggered a fresh sell-off in BTC price. Musk’s tweets are known to create massive volatility and wild swings in crypto markets. His top favourites remain the canine-inspired coins, including Dogecoin and Shiba Inu.
Looking at Cardano, its on-chain metrics paint a dour outlook, with IntoTheBlock’s Global In/Out of the Money (GIOM) model revealing that the “Out of the Money” investors could be motivated to offload their tokens if ADA price keeps falling.
How are the three trending DeFi tokens positioned technically?
Shiba Inu: Symmetrical triangle breakdown on the 12H chart risks deeper losses
Shib price finally broke its prison range to the downside on Monday, well anticipated, given that the technical setup painted a bearish picture.
The canine-inspired digital coin falls to the lowest levels since May 24 at $0.000006904, as the sell-off extends into Tuesday. The offered tone around the Shib price accelerated following a breach of the May 31 low of $0.000007438.
In doing so, the meme coin has reversed the recovery rally seen in the first half of the previous week.
Looking at it technically, the Shib price gave a 12-hour candlestick closing below the rising trendline support at $0.000008156, validating a downside break of a two-week-old symmetrical triangle on the said time frame.
A bearish breakdown materialized after the coin failed to find acceptance above the critical resistance at $0.000008675, which is the confluence of the 21 and 100-simple moving averages (SMA).
At the time of writing, SHIB/USDT is challenging the horizontal (orange) trendline support at $0.000006721.
If the Shib bulls fail to defend the latter, a massive crash towards the next horizontal (maroon) trendline support at $0.000002532 cannot be ruled out.
The Relative Strength Index (RSI) has recovered slightly from the lower levels, still remains well below the midline.
This suggests that a minor rebound could follow a deeper correction to the downside, in light of the technical breakdown.
SHIB/USDT: 12-hour chart
Alternatively, should the Shib bulls manage to protect the initial cap at $0.000006721, they could see a bounce back towards the triangle support now resistance at $0.000008248.
The bullish traders will once again test the abovementioned powerful hurdle at $0.000008675.
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Dogecoin: Bears take a breather before the downtrend resumes
Dogecoin keeps its bearish momentum alive and kicking for the sixth straight trading session, leaving little hope for the DOGE buyers, as the price braces for deeper losses in the coming days.
The tug-of-war between the bulls and bears finally ended on Monday, with the verdict in favour of the bears after the weekend’s indecisive trading. The selling wave across the crypto markets helped accentuate the losses in the celebrity-endorsed coin.
As observed on the daily chart, DOGE price had been wavering in a pennant formation since the May 19 flash crash, having carved out a symmetrical triangle amid lower highs and higher lows spotted on the said time frame.
The price confirmed a triangle breakdown after it closed Monday below the rising trendline support, then at $0.3411. The coin is looking to extend the downside on Tuesday, currently biding time before the next downswing sets in.
The 14-day RSI edging lower below the 50 level, backing the case for additional weakness. Therefore, Dogecoin could drop further to test the mildly bullish 100-daily moving average (DMA) at $0.2400.
The May 19 flash crash low of $0.1950 could be the next target if the bears remain unstoppable.
DOGE/USD: Daily chart
On the flip side, recapturing the triangle support-turned-resistance, now at $0.3501, is critical to unleashing the recovery mode.
The next level to beat for the DOGE bulls aligns at the horizontal 50-DMA at $0.3954.
All in all, DOGE’s path of least resistance appears to the south.
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Cardano: Sellers take over the reigns as 21-DMA gives way
Cardano price remains vulnerable to the further downside after it witnessed a bearish reversal on Monday.
Last week’s range play between the bullish 50-DMA at $1.5697 and horizontal trendline resistance at $1.9035 has finally broken this Tuesday.
Hence, the likelihood to recapture the $2 mark appears a distant dream now, as the bearish grip tightens around the ADA/USD pair, with industry experts calling for a decline to $0.50 levels.
From a short-term technical perspective, ADA price looks to threaten the slightly bullish 100-DMA at $1.3850 amid an ascending triangle in play.
Note that the digital asset charted a triangle breakdown on the daily sticks a day before, having faced rejection above the 21-DMA, then at $1.64, on multiple instances.
The bearish streak extends into Tuesday, especially after the price breached the abovementioned 50-DMA support.
The 14-day RSI flipped bearish amid a technical breakdown, now pointing south near 45.50. The momentum indicator indicates that there is more room for the sellers to flex their muscles.
A daily closing below the 100-DMA could expose the May lows of $0.9180. Ahead of that, the $1 round number could offer some support to the ADA bulls.
ADA/USD: Daily chart
On the other hand, the immediate resistance is seen at the 21-DMA, currently at $1.6077.
The triangle support now resistance at $1.6729 will then challenge the road to recovery.
Further north, the $1.70 threshold could test the bullish commitment, in order to allow additional corrective upside.
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