Top 3 Trending Cryptocurrencies Dogecoin, Shiba Inu, Stellar: DOGE Bulls Eye Upswing Towards $0.25
- Dogecoin bulls need to crack 21-DMA to extend the upside breakout from descending triangle.
- Shiba Inu is down but not out amid positive SHIB price-RSI divergence, piggy backs DOGE price.
- Stellar poised for a big technical breakout, targets 50-DMA and above, as fundamentals support.
After months of sluggish performance, the cryptocurrency market has shown signs of revival this week, with Bitcoin defying bearish interests after successfully recapturing the $30,000 mark.
There has been no miracle, as the resurgence in crypto demand clearly shows that how the widely traded digital assets remain at the mercy of celebrity endorsements and the extend to which they get influenced.
A clear case of this was seen earlier on when Tesla CEO Elon Musk revealed for the first time that his firm SpaceX owns Bitcoin (BTC) while adding that Tesla may be close to accepting BTC payments again after looking into BTC’s sustainability.
“I do own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin, and I do personally own a bit of Ethereum and Dogecoin of course,” the billionaire said in an appearance alongside Ark Invest CEO Cathie Wood, Twitter CEO Jack Dorsey and moderator Steve Lee from Square Crypto.
More so, Musk donned a T-shirt, with BTC on it, as it depicted Bitcoin future. It appeared as if the crypto buyers were just awaited his comments to initiate fresh uptrend, especially after most coins bottomed out during the May flash crash.
Among the DeFi token, Dogecoin takes a great advantage of Musk’s preference for Bitcoin and other altcoins while Shiba Inu is struggling to extend the bullish momentum.
Meanwhile, Stellar put up a great show, spiking on reports that Stellar Foundation is partnering with private equity firm Advent on a possible deal of acquiring MoneyGram International.
How are these three top trending DeFi tokens positioned technically?
Dogecoin gears up for a rally to $0.25, as technical indicators scream buy
The DOGE bulls are gathering strength this Thursday before triggering a fresh upswing towards $0.25.
Wednesday’s stellar performance has woken up the buyers from a deep slumber, thanks to the celebrity endorser Musk once again.
Observing Dogecoin’s daily chart, Tuesday’s Doji candlestick formation was the tipping point, which paved the way for a bullish reversal. The rebound from near $0.1600 to $0.2183 finally brought an end to the downtrend from the June 25 high of $0.2914.
DOGE price broke the prison range and recaptured the critical 200-Daily Moving Average (DMA) support-turned resistance at $0.1816, as a fresh buying wave hit the crypto market on Wednesday.
Subsequently, the meme-based coin pierced through the falling trendline resistance at $0.1873, yielding a close above the latter on a daily basis. The breakthrough confirmed a descending triangle breakout, as DOGE bulls almost attempted the 21-DMA barrier, now at $0.2074.
The key factor that could be attributed to the revival of the buying interest in Dogecoin is the positive price-Relative Strength Index (RSI) divergence on the said time frame, which is portrayed by a red rising trendline on the leading indicator.
If the DOGE buyers find acceptance above the 21-DMA hurdle, then the downward-sloping 50-DMA at $0.2581 will be next on their radars.
DOGE/USD: Daily chart
On the flip side, the 200-DMA offers immediate cushion, where the triangle resistance now support coincides.
A failure to resistance above it would drag DOGE price back towards the base of the triangle near $0.16, which converges with Tuesday’s low.
Shiba Inu bears testing bullish commitments amid favourable technicals
Despite an upbeat tone seen across the crypto space, Shiba Inu bulls fail to capitalize on it while shrugging off its canine-themed rival’s, Dogecoin, positive momentum.
SHIB price is losing nearly 3% so far this Thursday’s trading, flirting with daily lows just above $0.00000630, at the time of writing.
Shiba’s pullback comes following a failure to find a footing above the $0.0000070 mark, although it could just be a brief consolidation before SHIB price springs back to life.
From a short-term technical perspective, SHIB price charted a three-week-long falling wedge on the daily sticks after it managed to close Wednesday above the descending trendline resistance at $0.000006392.
The next significant target for the bulls is envisioned at Wednesday’s highs reached at $0.000007097.
Further up, SHIB price would face a dense cluster of resistance around $0.00000750-$0.00000780, where the 21, 50 and 100-DMAs intersect.
A daily closing above the latter could trigger a fresh move higher towards the $0.000010 threshold.
Despite, the 14-day RSI still lurking below the midline, a positive price-RSI divergence keeps the buyers hopeful for the further upside.
SHIB/USDT: Daily chart
Meanwhile, the pullback could be capped by the triangle upside barrier, which is now the support, at $0.00000614.
Sellers will seek fresh entries below the last, opening floors for the test of the pattern support at $0.00000539.
To conclude, the latest downside move doesn’t negate the beginning of a fresh uptrend that kicked off earlier this week.
Stellar: Bulls remain unstoppable, extending the blistering recovery
Stellar Lumens brought an end to a month-long period of downside consolidation on Thursday, as XLM price showcases an impressive recovery from almost four-week lows of $0.1959 clocked on Tuesday.
The tide has clearly turned in favour of XLM bulls, as the recovery rally extends into the third straight day. In doing so, the coin remains on track to book its first weekly gain in three.
XLM price is looking to reclaim ground above the $0.30 level, especially after teasing a descending triangle breakout on the daily chart.
Therefore, the bulls are focusing on Thursday’s close above the falling trendline resistance at $0.2436 to confirm the big technical breakout. The downward-sloping 21-DMA meets with the said level, forming a critical level.
Up next, XLM buyers will need to clear the bearish 50-DMA at $0.2618. The 14-day RSI has spiked, cutting the midline to the upside sharply, which suggests that the bulls have taken the upside momentum in their stride.
XLM/USD: Daily chart
XLM optimists, however, remain exposed to only one downside risk should the 100-DMA cross the 200-DMA from above. The bearish crossover could likely generate a fresh sell signal, reviving the selling interest towards the double bottom (triangle support) near $0.1950.
Ahead of that cushion, the bulls could find some respite at $0.2436, the abovementioned confluence of the 21-DMA and triangle resistance-now turned-support.
Overall, the upside bias appears more compelling but the focus remains on Thursday’s close.
Read Also: Is Stellar Lumens (XLM) A Good Buy?