Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: SHIB price looks south amid healthy upside barriers

Last Updated July 23rd 2021
6 Min Read
  • Shib price’s path of least resistance appears to the downside amid a bunch of healthy resistance levels.
  • Dogecoin bears testing bullish commitments while below this key barrier on the daily chart.
  • Cardano remains poised to test the horizontal trendline resistance around $1.90 amid a favourable technical setup.
  • Crypto bulls remain hesitant, despite a fresh bid wave seen across the board on the first trading day of a new week. Bitcoin continues to lick its wounds below $40K after the recent sell-off while Ethereum also ranges below $3000K mark.

    The cautious optimism around the digital assets could be attributed to US Treasury Secretary Janet Yellen’s comments, which revived the Fed’s rate hike expectations.

    In a Bloomberg interview over the weekend, Yellen said: “If we ended up with a slightly higher interest-rate environment, it would actually be a plus for society’s point of view and the Federal Reserve’s point of view.” The Fed’s tapering bets diminishes the appeal of perceived inflation hedges such as bitcoin and gold while investors cheer El Salvador President Nayib Bukele’s plans to make bitcoin a legal tender.

    Meanwhile, Dogecoin and Shiba Inu consolidate the tepid bounce seen over the weekend following Coinbase’s announcement that it now supports the canine-inspired DOGE token on Coinbase.com and in the Coinbase Android and iOS apps.

    Cardano, the so-called Ethereum-killer remains promising amid favourable technicals. Michaël van de Poppe, a crypto expert, tweeted out, “so far, we're not seeing a bear market for #altcoins in their $BTC pairs. Both #Cardano and #Ethereum are doing really well. I'm expecting them to accelerate even more the moment that #Bitcoin finishes this entire downtrend.”

    How are the three trending DeFi tokens positioned on the technical graphs?

    Shiba Inu: Acceptance above this key hurdle is critical to reviving the uptrend

    Shib price is trying hard to extend Sunday’s pullback towards $0.0000090, although the bulls seemingly lack a fresh impetus, as the technical setup continues to favor the bears.

    After the bullish momentum seen in the first half of the last week, the sellers regained control amid a broad crypto market sell-off, paring back the weekly gains.  

    The Shib price remains trapped in an extremely tight range following the crash to sub-$0.0000080 level last Saturday.

    The doji candlesticks formed on the 12-hour chart, over the past couple of days, suggest that the buyers could be looking to recover ground.

    However, the so-called ‘Dogecoin-killer’ continues to face stiff resistance at $0.00000870, which is the convergence of the 21 and 100-simple moving averages (SMA) on the said timeframe.

    A 12-hour candlestick closing above that level is required, in order to extend the recovery momentum towards the symmetrical triangle resistance at $0.00000958.

    Note that the price has been wavering within a symmetrical triangle formation for two weeks.

    A sustained break above that key barrier could yield a triangle breakout, opening doors for a test of the static resistance around $0.00000

    SHIB/USDT: 12-hour chart

    shib/usd chart 060721

    Alternatively, Shib price could drop to test the triangle support at $0.00000813 if the bulls fail to take out the abovementioned hurdle, comprising over key averages.

    The leading indicator, the Relative Strength Index (RSI), trades flat-lined below the central line, pointing to increased bearish odds.

    Therefore, a triangle breakdown could recall the sellers, with the next downside target around $0.0000750 on their radars. 

    Read Also: Why Shiba Inu Is Going To Explode

    Dogecoin: Upside appears elusive unless 50-DMA is scaled convincingly

    Dogecoin is trading in the red zone for the fifth straight trading session on Monday, starting out a new week on the wrong footing.

    Despite a broad buying wave seen across the crypto market, DOGE price remains unmotivated, as the tug-of-war between the bulls and bears keeps stretching for the third day in a row.

    As observed on the daily chart, three consecutive doji candlesticks that followed two straight days of declines imply a weakening bearish momentum.

    However, with the 14-day RSI still holding beneath the 50 level, the downside bias remains intact.

    Therefore, defending the rising trendline support at $0.3447 is critical for the DOGE bulls. A daily closing below the latter could trigger a symmetrical triangle breakdown, exposing the mildly bullish 100-daily moving average (DMA) at $0.2359.

    If the selling pressure intensifies, the May 19 flash crash low of $0.1950 will be the last line of defense for the bulls. 

    DOGE/USD: Daily chart

    doge/usd chart 060721

    On the flip side, DOGE price needs to find a strong foothold above the critical 50-DMA at $0.3970.

    Acceptance above that level could likely negate the near-term bear trend.

    The next relevant upside target is seen at $0.4480, which is the falling trendline resistance.

    The lower highs and higher lows on the daily time frame, following the May 19 collapse, have confined the price within a pennant formation.

    Check Out: Is It Worth Investing In Dogecoin?

    Cardano: Looks to $2 mark whilst above 21-DMA

    Cardano price remains on track to test the $2 threshold, as the bulls are back in the game, awaiting a strong catalyst to build on the latest upside.

    Over the past week, the ADA price moved back and forth between the bullish 50-DMA at $1.5559 and horizontal trendline resistance at $1.9035.

    Even amidst the range play, Cardano’s outlook appears constructive on the daily sticks, especially after the price recaptured the 21-DMA at $1.6400 on Sunday.

    Backing the bullish scenario, the 14-day RSI points north, well above the midline, currently at 52.21.

    So long as the 21-DMA support holds, the ADA buyers will remain on the lookout for the above-mentioned horizontal trendline resistance. Further up, a retest of the $2 levels remains inevitable.

    ADA/USD: Daily chart

    ada/usd chart 060721

    On a firm break below the 21-DMA, the downside will open up towards the 50-DMA support.

    The ongoing range trade could break on a daily closing below the 50-DMA, calling for a test of the upward-sloping 100-DMA at $1.3855.

    Ahead of that, the $1.40 round number could be probed.

    Read More: What Will Cardano Be Worth in 2025?

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