Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Polygon: DOGE Eyes Deeper Losses If $1.1950 Caves In
- Dogecoin fast approaches May 19 flash crash low at 1.1950 as sell-off extends on a breach of 100-DMA.
- Shib price claws back losses but remains vulnerable amid a triangle breakdown on the 12H chart.
- Polygon is teasing a descending triangle breakdown on the 12H chart, as RSI points to more downside.
The crypto market bloodbath extends for the second straight day, as a fresh week kicks in, with Bitcoin fast approaching the key $30,000 support while Ethereum slumps 12% to sub-$2000 mark.
The pain in cryptocurrencies was exacerbated by Chinese crackdown announcements once again. On Monday, the People’s Bank of China (PBOC) summoned some banks and payment institutions on cryptocurrency speculations, urging banks and payment companies to promptly cut payment channels for cryptocurrency trading.
Over the weekend, the Chinese authorities cut power to mining farms in the Sichuan province, in its continued efforts to curb BTC mining. A slew of crypto-related accounts on China's Twitter-like Weibo platform was blocked over the weekend, as Beijing stepped up a crackdown on bitcoin trading and mining.
The DeFi tokens such as Dogecoin, Shiba Inu and Polygon MATIC also followed suit, caught in the crossfire amid a broader market sell-off. How are the three trending DeFi tokens positioned on the technical graphs?
Dogecoin: Bears eye 200-DMA if the crucial 1.1950 support caves in
The DOGE bears remain unstoppable and in no mood to give up, as the downbeat momentum extends into the seventh consecutive day on Monday.
DOGE price finally breaks its two-week-old prison range to the downside, as a dark cloud shadows the crypto market. Investors lose interest in the canine-inspired coin amid renewed concerns over the Chinese crackdown on cryptocurrencies.
Dogecoin’s daily-hour chart shows that the price has dived out of a narrow range, formed between horizontal 21-Daily Moving Average (DMA) at $0.3308 on the upside and the upward-sloping 100-DMA at $0.2691 guarding the downside.
The DOGE price has breached the critical 100-DMA cap, although confirmation on a daily closing basis is needed for the bears to flex their muscles towards the mildly bullish 200-DMA at $0.1494.
Ahead of the 200-DMA cushion, the May 19 flash crash low of $0.1950 could challenge the bearish commitments.
The 14-day Relative Strength Index (RSI) points south, testing the oversold region, suggesting that the sellers still have scope to create fresh entries.
DOGE/USD: Daily chart
The bearish bias is likely to remain intact so long as the DOGE price holds below the 100-DMA. Only a decisive break above the latter could lead to any meaningful recovery.
The next significant resistance at the 21-DMA will get tested if the buying interest accelerates.
The horizontal 50-DMA at $0.3979 will be the level to beat for the DOGE bulls.
Read Also: Dogecoin Trading Predictions
Shiba Inu: Sellers return, with multi-week lows back in sight
Shib price has returned to the red, kicking off the week on the wrong footing amid a broad crypto market sell-off.
The SHIB coin stalls its three-day bearish consolidation phase and jumps into the sellers’ hands once again, extending the reversal from last week’s high of $0.00001047.
The bearish traders now target the five-week lows of $0.00005402 reached on June 12 amid a downside breakout confirmed on the 12-hour chart.
The SHIB bears yielded a symmetrical triangle breakdown following a breach of the rising trendline support at $0.000007410. At that level, the 21-Simple Moving Average (SMA) coincided.
As of writing, the price is making a minor recovery attempt, as the RSI sees an uptick. However, the rebound appears shallow, as the momentum indicator still remains in the bearish territory.
Therefore, Shiba Inu is likely to challenge the multi-week troughs if the downside momentum regains traction.
Further south, the $0.00000500 round number will come into play.
SHIB/USDT: 12-hour chart
On the flip side, the confluence zone of the 21-SMA and the triangle support-turned-resistance could likely pose a risk to the recovery mode.
Acceptance above the last will put the 50-SMA at $0.000007833 to test, above which the upside would open up towards the falling trendline (triangle) resistance at $0.000009080.
Overall, the downside bias remains in place despite the tepid bounce amid a bearish technical picture.
Check Out: Will Shiba Inu (SHIB) Make Me Rich?
Polygon: The path of least resistance appears to the downside
MATIC price is witnessing another down day after witnessing a temporary reversal a day before. In doing so, MATIC bears are extending their control from the last week.
Polygon (MATIC) hits the lowest levels in nine days earlier on, now attempting a minor recovery over the last 12 hours.
However, the downside appears more compelling for MATIC price while it tests the lower boundary of descending triangle support, now at $1.2117.
Note that the price has been wavering within the descending triangle formation since the June 12 troughs at $1.1587.
Therefore, the bears are contemplating before attempting the next downside on a decisive break below the aforesaid triangle support.
The odds are likely towards a downside breakout, as the RSI remains below the central line at 40.71.
Further, the bears face only this one key barrier while the bulls have a bunch of healthy resistance levels on the upside, adding credence to a potential move lower.
Should the triangle breakdown materialize on a 12-hourly candlestick closing basis, a test of the upwards-sloping 200-Simple Moving Average (SMA) at $0.9398 remains in the offing.
Although the $1.10000 round figure could offer some support to the MATIC bulls.
MATIC/USD: 12-hour chart
Alternatively, the key resistance at $1.3737 could challenge the road to recovery. That level emerges as the upside hurdle of the potential triangle.
The next target for the bulls is aligned at the horizontal 21-SMA at $1.4239, above which the 100-SMA at $1.4562 will be brought in play.
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