Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: SHIB Price Not Out Of The Woods Yet
- Shib price eyes a decisive break below this key trendline support for additional downside.
- Dogecoin remains exposed to downside risks whilst below the 21-DMA resistance, 100-DMA eyed.
- Cardano bulls struggle to find a strong foothold above 21-DMA, as bears refuse to give up control.
The bearish undertone across the crypto market continues to persist so far this week, as May’s despair extends well into the initial days of June. The pioneer digital asset, Bitcoin remains sluggish below the $40K mark after teasing the May 19 crash low earlier on.
The sentiment around the crypto space remains uninspired by the Basel Committee’s proposal, allowing banks to hold the leading cryptocurrency and other digital assets. Additionally, El Salvador announcing Bitcoin as a legal tender also failed to spur any bullish momentum.
What seems like weighing on the crypto markets is a potential threat from the hawkish Fed’s expectations and regulations lurking on the digital space worldwide.
On Wednesday, The United States Internal Revenue Service Commissioner Charles Rettig urged Congressional authority to issue new regulations on cryptocurrencies. Meanwhile, Chinese authorities continue their crackdown efforts. Additionally, JP Morgan warned that a bear market wave is about to hit Bitcoin.
Meanwhile, the DeFi tokens keep drawing cues from broader market sentiment, with technical graphs of Shiba Inu, Dogecoin and Cardano still depicting a dour outlook in the near term.
The Shib price seemingly defies upbeat news that ShibaSwap decentralized cryptocurrency exchange (DEX) in testing mode, which will be released to the public soon.
Cardano could receive a shot in the arm if the bulls ditch the bearish bias, as its appeal of being energy efficient is on the rise.
How are the three trending DeFi tokens positioned technically?
Shiba Inu: Daily technical setup continues to remain in favour of bearish traders
After Wednesday’s temporary reversal, Shib price falls back in the sellers’ hands, as it loses over 4% to trade around $0.0000070, as of writing.
The canine-themed coin is in a phase of downside consolidation, having been on a losing streak since the June 3 high of $0.00001038. That has formed the month top so far.
As explained here, Shib price remains at a risk of further downside, especially after it confirmed a symmetrical triangle breakdown on the daily chart on Monday.
The follow-through selling interest came through on Tuesday, as the Shib price briefly breached the key horizontal (orange) trendline support, now at $0.000006767, reaching the lowest levels since the May 8 upswing.
The SHIB bears need a daily closing below the abovementioned critical support, below which a sharp sell-off towards the next horizontal (maroon) trendline support at $0.000002492 remains on the cards.
The 14-day Relative Strength Index (RSI) is edging lower below the midline, currently placed at 42.48. The bearish leading indicator suggests that there is more scope for declines should this key demand zone in the orange cave in.
SHIB/USDT: Daily chart
On the flip side, any recovery attempts will meet strong offers around the $0.000008500 region, which is the confluence of the triangle support and the bearish 21-daily moving average (DMA).
The buyers will then look for opportunities to tap the triangle resistance at $0.000009050. At that point, the upward-sloping 50-DMA coincides.
To conclude, the horizontal (orange) trendline support is the ultimate saviour for the Shib price.
Check Out: Why Shiba Inu Is Going To Explode
Dogecoin: A drop towards the 100-DMA cushion remains in the offing
Dogecoin remains at the mercy of the bearish traders, despite a brief attempt to recover ground a day before.
The selling interest around the DOGE price remains unabated after it broke the 2.5-week-old symmetrical triangle pattern to the south on Monday.
The downside breakout re-energized the bears, as they now look to resume their journey in the down direction.
The immediate support is thus seen at Wednesday’s low of $0.2950. A failure to resist above the latter could recall the sellers, as they keep the ascending 100-DMA at $0.2445 in sight.
The last line of defense for the DOGE bulls is envisioned at the May 19 flash crash low of $0.1950.
The 14-day RSI continues to point south, sitting comfortably below the midline. This implies that the sellers have additional room to flex their muscles should the selling pressure intensify.
It’s worth noting that Dogecoin’s bearish bias remains intact so long as it holds below the 21-DMA at $0.3450.
DOGE/USD: Daily chart
Acceptance above that upside barrier is likely to accelerate the recovery momentum, driving the rates towards the triangle support-turned-resistance at $0.3644.
The horizontal 50-DMA hurdle at $0.3969 will challenge the bullish traders, as they fight hard to take on the $0.40 psychological level.
All in all, daily closing above the 50-DMA barrier is critical to reversing the bearish trend in the near term.
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Cardano: 50-DMA guards the downside but for how long?
Cardano’s price action over the past three days suggests that the bulls appear to have finally thrown in the towel after the recent battle.
Sellers continue to lurk at higher levels, limiting the recovery attempts while the fundamentals keep hinting at a likely downside towards the $0.50 level in the coming days.
After the downside break from the ascending triangle witnessed earlier this week, the ADA price has once again taken shelter in a tight range between the triangle support now resistance at $1.7436 and the 100-DMA at $1.3904.
At the press time, ADA/USD is down 4%, trading around the 50-DMA located at $1.5808. The 21-DMA coincidentally meets the 50-DMA at that point, looking to confirm a bearish crossover on the daily time frame.
A daily candlestick closing below the 50-DMA could put the 100-DMA support at risk yet again. The relentless downside pressure could help validate the bear cross, opening floors for deeper losses towards the $1 psychological mark.
The 14-day RSI also adds credence to more weakness in the crypto coin, as it is heading south around 47.30. If the sellers find a strong foothold below the $1 threshold, May lows at $0.9180 could be threatened.
ADA/USD: Daily chart
Alternatively, the ADA bulls need a firm break above the 21 and 50-DMA confluence at $1.5808 to revive the recovery rally.
Only a daily closing above the aforesaid triangle support now resistance could rescue the bulls from the bearish grip.
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