Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Cardano: SHIB price primed for a big move
- Shib price keeps its downside consolidation intact on the 12H chart, eagerly awaits a breakout
- Dogecoin needs acceptance above 78.6% Fib level on the daily chart for any sustained recovery.
- Cardano eyes a break above this key level in order to resume its journey towards the $2 mark.
Nothing seems to have changed for the crypto markets on the first trading day of a new week, as the choppy price action continues from the previous week, as volatility remains low.
The flagship cryptocurrency, Bitcoin, remains confined in a range of around $38K while Ethereum recaptures $2500. However, markets are seeing a fresh bid wave, which also appears to lift the demand of some of the trending DeFi tokens, including Dogecoin and Cardano.
Shiba Inu, the ‘Dogecoin Killer’, is in search of a clear direction, awaiting a fresh catalyst, as investors seemingly move over to Cardano.
The so-called ‘Ethereum Killer’ saw an impressive turnaround and recaptured the fourth spot, in terms of market capitalization, after Cardano recently announced its plans for its smart contract rollout, called Alonzo. The multi-phase rollout will see a 30-60-90-day plan as explained by the Cardano team.
Meanwhile, crypto traders weigh in on the latest announcement from the Reserve Bank of India (RBI), which offered a huge relief to crypto investors and traders by clarifying those banks and other entities cannot use its 2018 order on virtual currencies to caution their customers.
This comes after several Indian banks were reportedly not allowing access to crypto trading platforms and had warned them against trading in digital currency.
How are the three trending DeFi tokens positioned on the technical graphs?
Shiba Inu: Awaits a strong trigger for a range breakout
Shib price is extending its range play around $0.0000070 levels into a third straight day on Monday, awaiting a strong catalyst for the next directional move.
The traders appear on the side-lines, leaving volatility around the canine-themed digital currency absolutely minimal, as the downside consolidation phase continues following the May 19 sharp correction.
The side trend, with a narrowing range each passing day, only suggests that a breakout in either direction is imminent, which could spur a fresh bout of volatility. Markets, therefore, brace for wild swings, given the ongoing consolidation.
The downside appears more compelling for the Shib price, as the leading indicator, the Relative Strength Index (RSI) on the 12-hour chart looks south while holding below the midline.
Therefore, a strong trigger is needed for the SHIB bears to take out powerful support around $0.0000070. That supply zone is the confluence of the upward-sloping 100-simple moving average (SMA) and the horizontal (orange) trendline support.
The next relevant support awaits at the $0.0000050 psychological level, below which the May 8 low of $0.00000259 could be on the sellers’ radars.
SHIB/USDT: 12-hour chart
Alternatively, Shib price needs a 12-hourly closing above the bearish 21-SMA at $0.00000853 to negate the downbeat momentum in the near term.
A sharp rally towards the ascending 50-SMA at $0.00001346 could be in the offing if the bulls manage to find a foothold above the 21-SMA barrier.
However, the $0.0000100 hurdle could challenge the bullish commitment on their way to the 50-SMA.
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Dogecoin: Bulls attempt a recovery but bears refuse to give up
Amid an overall sluggish action seen across the crypto, Dogecoin’s price movement over the past few days comes as no exception. It appears that market participants are contemplating, as a terrific month draws to an end.
As for DOGE price, the daily chart shows clear signs of inductiveness after the third Doji candlestick formed consecutively.
Dogecoin is kicking off the week on the right footing this Monday, attempting a minor bounce while snapping a four-day losing streak.
Despite some signs of life, the Doge price is not out of the woods yet, as it continues to remain below $0.3160, the 78.6% Fibonacci Retracement levels of the decline from all-time highs to the May 19 flash crash.
DOGE bulls need acceptance above the latter on a daily closing basis, in order to stage any meaningful recoveries.
If the buyers seize near-term control, a test of the bullish 50-daily moving average (DMA) at $0.3730 remains inevitable.
Further up, the bearish 21-DMA at $0.3946 could be put to test, above which the critical 61.8% Fibo level of the same decline at $0.4110 is expected to be the line in the sand for the DOGE sellers.
DOGE/USD: Daily chart
Alternatively, should Saturday’s low of $0.2769 give way, sellers could see a steep drop towards the May 23 low of $0.2469.
The ascending 100-DMA at $0.2140 is likely to offer some reprieve to the DOGE bulls.
With the 14-day Relative Strength Index (RSI) in the bearish territory, sellers are likely to remain in control.
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Cardano: The path of least resistance appears to the upside
Cardano price is building on Sunday’s 15% rebound and remains firmer so far this Monday, consolidating the recent upswing.
The tide seems to have turned in favour of the ADA bulls, as the technical indicators have flipped bullish, indicating a recovery in the making after May’s slump.
On the 12-hour graph, the ADA price has charted an upside break from the descending trendline connecting the all-time highs and the May 26 high.
However, horizontal 50-SMA at $1.7213 continues to act as a tough nut to crack for the ADA bulls, leaving the price to consolidate below the latter.
A sustained break above the 50-SMA is expected to fuel a fresh rally towards the May 26 high of $1. 8351. The next stop for the bulls is seen at the $2 threshold.
The RSI holds firmer above the midline, supporting the case for the further upside. The indicator currently stands at 51.75.
ADA/USD: 12-hour chart
Meanwhile, the buyers remain hopeful so long as strong support of around $1.52 is defended. That area is the convergence of the descending trendline resistance, 21 and 100-SMAs.
The bullish reversal could likely get invalidated if the latter is breached convincingly, opening floors towards the 200-SMA at $1.3462, which is a fierce support.