- Dogecoin looks to retest 1.1950 support, as the recovery falters amid a bearish cross on the 12H chart.
- Shib price reverses from falling channel lower boundary, but upside likely to remained capped.
- Ethereum Classic on the verge of resuming downtrend, as the tide appears to be turning in favour of bears.
After last week’s slump, the crypto market is licking its wound, as the granddaddy of cryptocurrencies, Bitcoin maintains its recovery mode on Thursday.
Bitcoin recaptures $34,000 once again, reversing a decline below $30K while Ethereum nears the $2000 level, as buyers scramble to fight back control after sluggish trading seen so far this week.
The slump in Bitcoin could be mainly attributed to a chart-driven selling after the pioneer digital asset confirmed a death cross on the daily sticks in the previous week.
The altcoins appear unimpressed by a fresh bid wave seen across the crypto board, with the technical graphs of Ethereum Classic, Dogecoin and Shiba Inu still showing signs of potential weakness.
DOGE bulls lack conviction even though Dogecoin developers and Tesla Inc.’s founder Elon Musk are endorsing an upgrade proposal to reduce transaction fees by 90%, making it a more cost-effective payment method. However, it could take some time before the project could win community support and from Dogecoin miners and node operators.
Meanwhile, news surrounding Ethereum Classic includes Digital Currency Group, Inc. (DCG), the parent company of Grayscale Investments, LLC, authorizing the purchase of up to a total of $50 million worth of shares of Grayscale Ethereum Classic Trust.
Let’s take a look at the technical charts for the abovementioned three trending DeFi tokens.
Ethereum Classic: Impending bear cross points to the beginning of the next downswing
ETC price is posting small gains this Thursday, wavering back and forth in a narrow range around $40, unable to build onto Wednesday’s solid upturn.
The ETC bulls are now catching their breath after a decent comeback from two-month lows of $31.92. The sluggish momentum could be traced back to listless performance across the crypto board.
As observed on ETC/USD’s 12-hour chart, the selling momentum appears to have returned, as the 21-SMA is on the verge of piercing the 200-SMA from above.
Confirmation of a bear crossover on the said time frame will likely trigger a bearish reversal, recalling the sellers to resume this month’s downtrend.
Further, the RSI is also seen taking a U-turn whilst below the central line, heading back towards the oversold territory.
Therefore, a retest of the daily lows at $38.53 remains in the offing, below which Wednesday’s low of $34.74 could help limit the decline in Ethereum Classic.
The next downside target remains the abovementioned multi-day lows just below the $32 mark.
ETC/USD: 12-hour chart
On the flip side, a decisive break above the June 22 high of $47.05 is needed to negate the near-term bearish bias.
Further up, the confluence of the 21 and 200-SMAs at $48.64 will come into play. The $50.00 psychological level will act as powerful resistance, capping any bullish attempts.
All in all, the tide seems to be turning in favour of the bearish traders.
Dogecoin: Turns south towards 1.1950 as sellers fight back control
Having staged an impressive recovery from the 200-Daily Moving Average (DMA) at $0.1510, Dogecoin extended the upbeat mood into the third straight day on Thursday.
Although the momentum is seen fading over the last 12 hours, as the buyers seem to face some exhaustion heading towards the weekend.
While attempting the recovery, the DOGE price recaptured the May 19 flash crash low of $0.1950, which was once critical support.
DOGE’s 12-hour chart shows signs of bears taking over control, as the price spots the first red candlestick in six.
This comes on the back of a bear cross confirmed on Wednesday, with the 21-Simple Moving Average (SMA) having pierced the mildly bullish 200-SMA.
The Relative Strength Index (RSI) has stalled its recovery, turning south towards the oversold territory, suggesting strengthening the bearish case.
That said, a test of the abovementioned $0.1950 level, which now enacts as support once again, remains on the cards.
A sustained break below that level will reinforce the bearish momentum towards the 200-DMA.
DOGE/USD: 12-hour chart
Alternatively, if the bulls regain control, the recovery could resume towards the downward-sloping 21-SMA, now at $0.2654.
Further up, the 200-SMA at $0.2770 could likely challenge bullish commitments. The mildly bullish 50-SMA at $0.3155 will then come into play.
Ahead of that the $0.3000 round number will offer tough resistance to the DOGE bulls.
Check Out: Dogecoin Trading Predictions
Shiba Inu: Recovery remains limited by the 21-SMA amid bearish RSI
Shib price is seen on the wrong footing so far this Thursday after a temporary reversal on Wednesday, as the bearish undertone still remains intact.
The SHIB coin stalls its two-day recovery from ten-day troughs of $0.000005203, as the bulls fail to find acceptance above the $0.00000700 threshold.
The recent consolidation in the canine-inspired DeFi token could be seen as a breather before the DOGE bears take over complete control.
The near-term technical picture for Dogecoin also backs the above view, as the price pauses its rebound from the lower boundary of a month-old falling channel on the 12-hour chart.
The $0.00000700 appears as the key level to beat for the bulls, a 12-hourly candlestick closing above the latter would then expose the upward-sloping 21-SMA at $0.000007399.
Fresh buying opportunities will emerge on a firm break above 21-SMA, with DOGE buyers then seeking a test of the mildly bearish 50-SMA at $0.000007751.
So long as the DOGE price holds below the last, the downside bias remains well in place.
Adding credence to a likely move southwards, the RSI is also pointing lower, currently at 45.09.
SHIB/USDT: 12-hour chart
Should the selling interest accelerate, a drop back towards Tuesday’s low of $0.000005203 cannot be ruled.
The channel support at $0.000004660 will be next on the sellers’ radars.
A 12-hourly candlestick closing below that level will validate a channel breakdown, opening floors for a test of the critical horizontal (orange) trendline support at $0.0000002529.
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