Top 3 Trending Cryptocurrencies Shiba Inu, Dogecoin, Polygon: SHIB Price Braces for Sell-off Below 21-DMA

Last Updated July 23rd 2021
6 Min Read
  • SHIB price looks to defend the 21-DMA support, as bears test the bullish commitments.
  • Dogecoin remains on track to test the critical 200-DMA amid bear cross on the daily sticks.
  • Polygon set for a big technical break as the daily price range gets tighter, downswing in the offing?
  • A sea of red engulfs the crypto market this Thursday, with bulls seeing no respite, as the granddaddy of cryptocurrencies, Bitcoin, re-approaches the critical $30,000 support while Ethereum tests $2100.

    The no. 2 coin appears to be the worst amongst the top widely traded digital assets, as traders anticipate its upcoming ‘Triple Halving'. Ethereum London hard fork is expected to launch very soon and, therefore, investors remain on the defensive.

    The bearish momentum cascades across the board amid China’s concerns over the use of Bitcoin and stable coins. The People’s Bank of China’s Vice Governor Fan Yifei said earlier on that “so-called "stable coins" may pose risks and challenges to the global monetary and payment systems.”

    China’s crackdown on cryptocurrencies has already dented the investors’ sentiment since the start of this week. The bears exert pressure on Bitcoin after an unknown whale was trying to short it with over 5,000 BTC, which spiked Bitfinex shorts 160% in a matter of two hours.

    Altcoins are also following suit and turning bearish, with Shiba Inu, Dogecoin and Matic on the verge of a fresh downswing. Let’s take a look at how are these trending tokens positioned on the technical graph.

    Shiba Inu: Rejection at higher levels recall the sellers, where next?

    SHIB bears have returned to the game after two consecutive days of defeat, looking to defy the recent range play.

    Shiba Inu takes cues from the negative tone seen across the crypto board, as the most widely-traded digital assets are thrown under the bus.

    So to speak, SHIB price has changed its course after failing to find acceptance at higher levels, with the bearish traders now looking for fresh entries.

    From a near-term technical perspective, SHIB price has been trading in a narrow between the $0.000010-$0.0000080 region, barring a brief aberration to near $0.0000070, where it reached two-week lows on Tuesday.

    The prison range has been defined by the 21-Daily Moving Average (DMA) at $0.000007911 guarding the downside while a falling trendline resistance limits the bullish attempts at $0.00009674.

    Taking a bird’s eye view, the canine-themed coin has been traversing in a symmetrical triangle formation since mid-June.

    SHIB bulls have consistently faced rejection at the abovementioned trendline resistance. Daily closing above that barrier will confirm a triangle breakout, calling for a test of the $0.000010 mark.

    Acceptance above the latter is critical unleashing additional upside towards the June 1 high at $0.00001047. The next target for the buyers is aligned at the May 24 high of $0.000012222.

    SHIB/USDT: Daily chart

    shib/usd daily chart 070821

    The 14-day Relative Strength Index (RSI) points south while probing the central line, suggesting a weakening of the bullish grip.

    The downside in Shiba Inu could gain momentum on a sustained break below the 21-DMA support, yielding a range breakout.

    Sellers will then target the rising trendline (triangle) support at $0.000007211, below which the upward-sloping 100-DMA at $0.000006623 could come into play.

    Read Also: What Will Shiba Inu Be Worth in 10 Years?

    Dogecoin: The path of least resistance appears to the downside

    Dogecoin’s steady decline from the June 25 high of $0.2914 seems to have found an additional leg this week, as the bearish momentum from Wednesday’s extends into Thursday’s trading so far.

    The lower highs formed on the daily chart of DOGE price have kept the bears alive and kicking, as they await a strong catalyst to begin another downswing, especially after last week’s sluggish price action.

    DOGE’s daily chart shows that the canine-inspired coin has extended the negative start to the week, following the 21-DMA resistance at $0.2443 since early June.

    Such a price action implies that DOGE bears will likely retain control so long as the price holds below the latter. Therefore, sellers remain on track to challenge the powerful ascending 200-DMA support, now at $0.1702.

    The $0.20 psychological level, however, could test the bearish commitments, as the downside opens up towards the 200-DMA.

    The RSI – leading indicator remains sloppy while within the bearish zone, allowing room for more declines.

    Adding credence to the downside, a bear cross got confirmed on the said time frame, as represented by the 50-DMA cutting the 100-DMA from above.  

    DOGE/USD: Daily chart

    doge/usd daily chart 070821

    Only a daily closing above the 21-DMA could call for a bullish reversal by reviving the buying interest.

    Up next, the confluence of the 50 and 100-DMAs around $0.3050 could emerge as a tough nut to crack for the bulls.

    Check Out: Dogecoin Price Prediction for 2025 and 2030

    Polygon: MATIC bears aim for a daily closing below the 100-DMA support

    MATIC price is losing nearly 5.50% on the day, trading just under the $1.07 threshold, as the two-week long-range trade extends into Thursday. 

    Nothing seems to have changed for MATIC traders, as the sluggish momentum continues between the $1.28 and $1.00 price range.

    However, Polygon is seen drawing more investors’ attention, as it remains at a critical juncture. The downbeat performance in the crypto market could offer that much-needed trigger to finally dive out of the ongoing range play.

    Note that MATIC price has been confined between two key major averages on the daily chart, with the range getting tighter each passing day.

    A downside breakout appears more compelling, given that the RSI heads south below the 50 level. The momentum indicator is currently seen at 41.0.

     A potential move lower would gain conviction only on a daily closing below the mildly bullish 100-DMA at $1.0668.

    The next relevant cushion awaits at the June 22 dip to $0.92. Further south, the May 23 low of $0.7432 could be put at risk.

    MATIC/USD: Daily chart

    matic/usd daily chart 070821

    However, the tide could turn in favour of the MATIC bulls, if the price yields a firm break above the bearish 21-DMA at $1.5502.

    Should the 21-DMA resistance cave in, a sharp rally towards the $1.30 round number cannot be ruled out.

    All in all, the technical setup of the above-explained DeFi token paints a dour picture in the short term.

    Don't Miss: Why Polygon (MATIC) Will Skyrocket

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