Top 3 Trending Cryptocurrencies Shiba Inu, Dogecoin, Cardano: DOGE bulls back in the game after Musk’s poll
- Shib price could test this critical support before resuming its uptrend to fresh all-time highs.
- Dogecoin holds Musk’s poll-induced spike, downside cushioned by the 50% Fibo level, 21-DMA.
- Cardano has room to rise towards the $2 mark, as the bulls recapture 21-SMA on the 4H chart.
The decrease in demand for Bitcoin and Ethereum on Tuesday is seeing a shift in upside momentum towards Shiba Inu, Dogecoin and Cardano. The pioneer cryptocurrency tumbled towards $54,000 after facing rejection once again at $60,000 while Ethereum eased back below the $4000 level.
Markets could be scouting for digital assets under $2 amidst expectations that they could become the next Bitcoin story.
Amongst those tokens with strong bullish potential, Shiba Inu has surged by over 2250% in the past week, with about 165% rally seen on Monday itself. The Shib price skyrocketed after the relatively new coin got recently listed on major crypto exchanges, including Binance, FTX, Huobi and OKEx.
Meanwhile, its canine-themed counterpart, Dogecoin, saw fresh signs of life after Tesla Inc. and SpaceX founder Elon Musk ran a poll on Twitter asking whether or not Tesla should accept dogecoin. The poll shows an overwhelming majority (~76%) replying "Yes."
Musk’s Twitter poll revived the DOGE bulls after the weekend’s sell-off, fuelled by Musk’s Saturday Night Live (SNL) appearance. The meme-coin dances to the whims and fancies of the Tesla CEO ever since Musk took to Twitter to describe DOGE as his "fav cryptocurrency" in April 2019.
Let’s see how these three hot DeFi tokens are positioned on the technical charts?
Shib Price: A falling wedge pattern on the 30-minutes chart keeps the bulls hopeful
The Shib price is on a retreat so far this Tuesday after Monday’s explosion to record highs. Shiba Inu, known as the “DOGE killer,” is falling hard, at the time of writing, shedding nearly 5% on the day.
On the 30-minutes time frame, the Shib price has formed lower highs and lower lows, suggesting brief bullish exhaustion.
Therefore, the extension of the correction from lifetime highs cannot be ruled, as the canine-inspired digital asset teases a rising wedge formation on the given time horizon.
A sustained move below the falling trendline support at $0.00002812 would confirm a downside break from the wedge formation.
The next safety net for the SHIB bulls awaits at the ascending 100-simple moving average (SMA) at $0.0000245.
If the 100-SMA caves in amidst intense selling pressure, then the bears are likely to test the $0.0000200 round figure.
SHIB/USDT: 30-minutes chart
However, with the relative strength index (RSI) recovering from lows, currently at 46.56, implies that the price could see dip-buying on every downside attempt.
Also, it’s worth noting that the natural tendency of a falling wedge pattern is to yield a break to the upside.
The Shib buyers need to find acceptance above the horizontal 50-SMA at $0.00003169 before it can resume the bullish momentum.
Strong resistance around $0.0000330 is likely to test the bullish commitments, as the record highs at $0.00003876 remain in sight for the optimists.
Dogecoin: Snaps three-day losing streak as Elon Musk saves the day for bulls
Dogecoin, the so-called meme coin, has turned positive for the first time in four trading sessions, courtesy of Musk’s continued endorsement.
The tide seems to have turned in favour of the DOGE bulls, as depicted by the daily chart, with all technical indicators backing the rebound.
Despite the 35% sell-off over the weekend, the DOGE price defended the ascending 21-daily moving average (DMA) at $0.4121, time and again.
Adding credence to the bullish reversal, the price has not closed below $0.4472, the 50% Fibonacci Retracement level of the record rally that kickstarted from the April 23 low of $0.1357.
The RSI has edged slightly higher above the midline, flirting with the 60.00 level. The indicator, thus, suggests that there is more scope to the upside.
Further, the DOGE price holds above all the major moving averages, favouring the buyers.
The upturn in the meme-based digital token could likely gain momentum on a daily closing above the 61.8% Fibo level at $0.5211.
The next resistance at the daily highs of $0.5584 could be retested. The $0.60 psychological magnate is likely to act as a tough nut to crack for the bullish traders.
DOGE/USD: Daily chart
Alternatively, a daily closing below the abovementioned 50% Fibo support could revive the downtrend, with a firm break below the 21-DMA critical for the bears to test the $0.40 cap.
The 38.2% Fibo support at $0.3713 could be put at risk, which could accentuate the recent bearish momentum.
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Cardano: Path of least resistance appears to the upside while within a rising channel
Following the sharp decline seen on Monday, Cardano is staging an impressive rebound this Tuesday.
The sell-off in the ADA price from record highs of $1.8927 was mainly driven by the negative-price RSI divergence, as observed on the 12-hour chart and explained here.
The ADA bulls are back in the game, eyeing new record highs, as the price wavers in a rising channel formation on the four-hour chart.
ADA/USD has already tested the lower boundary of the rising channel at $1.6078, recalling the buyers.
The recovery gathered steam after the bulls recaptured the horizontal 21-SMA resistance at $1.6871, which has now turned key short-term support.
The journey towards the channel resistance at $1.9064 remains in the offing so long as the price holds above the 21-SMA support.
The RSI is sitting comfortably above the central line, offering extra zest to the ADA bulls.
ADA/USD: Four-hour chart
On the flip side, a four-hour candlestick closing below the channel support will validate a breakdown, negating the near-term upbeat momentum.
The next line of defense for the buyers is placed at $1.5575 - the 50-SMA, below which a test of the $1.50 level would be inevitable.
To conclude, the ADA traders are anticipating a test of the $2 mark once again amid favourable technicals.
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