Top 3 Trending Cryptocurrencies Shiba Inu, Dogecoin, VeChain: Shib price at make-or-break point

Last Updated July 23rd 2021
6 Min Read
  • Shib price eyes a big breakout from a descending triangle on the 4H chart, rebound to extend?
  • Focus on Monday’s close as Dogecoin’s rally seen gaining momentum towards the $1 mark.
  • VeChain’s 12H technical setup points to additional downside, as 100-SMA support caves in.
  • As a fresh week kicks off, the cryptocurrencies are in a sea of red, courtesy of a massive pullback in Bitcoin. Investors liquidated their BTC positions after some investors speculated over the weekend that Tesla may be selling its bitcoin holdings.

    Tesla Inc’s CEO Elon Musk attempted to calm market nerves early Monday, which helped the pioneer cryptocurrency to rebound towards $46,000. The no.1 coin is still down 30% from record highs.

    The sentiment still remains tepid across the crypto board, which has translated into the DeFi coins, as they witness some downward pressure as well.

    However, the DeFi tokens such as Dogecoin, Shiba Inu and VeChain see limited declines, as investors reassess Musk’s weekend tweet, explaining why his company suddenly turned against purchasing Tesla Car using Bitcoin last week. The billionaire said that he thinks Bitcoin is not as de-centralized as people believe it to be, hinting towards his support to Dogecoin.

    Meanwhile, Shiba Inu saw a revival in demand on Sunday after Ethereum’s co-founder burnt 90% of his Shiba Inu assets, which accounts for over 40% of all coins in circulation. The move bumped up prices amid concerns that the supply would not be able to match the growing demand in the canine-theme token. It’s worth noting that Shib is a dogecoin-inspired token that surged 1,000% last week.

    How are these three trending DeFi tokens positioned on the technical charts?

    Shib Price: Buyers need to crack this critical hurdle to confirm a bullish reversal

    A broad crypto market sell-off appears to undermine the sentiment around Shiba Inu, as it reverses a part of Sunday’s rebound from eight-day lows of $0.0000105.

    Despite the renewed weakness, the Shib price remains in a consolidative mode, accumulating losses following a massive crash from all-time highs of $0.0000393 reached on May 10.

    At the press time, the canine-themed coin is trading around $0.0000160, down nearly 2% on the day.

    Looking at SHIB/USDT’s four-hour chart, the correction from record highs seems to have taken the shape of a descending triangle.

    The Shib price is on the verge of confirming an upside from the triangle if it closes the 12-hour candlestick above the falling trendline resistance at $0.0000175.

    That level also coincides with the 21-simple moving average (SMA), forming a tough nut to crack for the Shib bulls.

    The Relative Strength Index (RSI) is edging higher while still below the midline, suggesting that only a strong catalyst could likely revive the recovery momentum from weekly troughs.

     In case a triangle breakout materializes, the buyers could aim for the horizontal 50-SMA at $0.0000212.

    The $.0000250 psychological level could be put to test should the buying pressure accelerate.

    SHIB/USDT: Four-hour chart

    shib/usdt chart 051721

    However, if the bulls fail to find acceptance above the powerful resistance at $0.0000175, a fresh selling wave could sweep the Shib price back towards $0.0000127.

    The latter is the intersection of the ascending 100-SMA and horizontal triangle support.

    A sustained move below the last could trigger a triangle breakdown, opening floors towards the 200-SMA at $0.0000067.

    Dogecoin: Risks remain skewed to the upside amid a potential falling channel breakout

    Dogecoin, the so-called meme coin, is trading on the back foot, taking cues from the bearish undertone seen across the crypto space.

    The DOGE price formed a Doji candlestick on Sunday after attempting a sharp recovery from a steep drop seen a day before.

    The Doji candlestick, thus, showed that Dogecoin continues to lack the bullish conviction, which is very evident in Monday’s 5% fall so far.

    DOGE’s 12-hour chart shows that the bulls continue to face stiff resistance around $0.5180, which is the convergence of the falling trendline resistance and 21-SMA.

    If the bulls manage to find a foothold above the latter on a 12-hourly candlestick closing basis, the price could be poised an upswing towards the $1 threshold amid a two-week-old falling channel confirmation.

    The natural tendency of a falling channel is to yield an upside break, as it is considered a bullish continuation pattern.

    However, with the RSI steadily decline while battling the midline, the DOGE bulls are likely to have a hard time reversing the recent bearish momentum.

    DOGE/USD: 12-hour chart

    doge/usd 051721

    The immediate cushion is seen at the mildly bullish 50-SMA at $0.4391. The next significant cap for the sellers is seen at the psychological $0.40 magnate.

    Further south, the 100-SMA at $0.29 could offer the last line of defense for the meme coin.

    Read Also: Will Dogecoin Make Me Rich?

    VeChain: Sellers target 200-SMA on the 12H chart amid a bear cross

    The VET bears are testing weekly lows just above $0.15, as the price erodes nearly 9% on a daily basis.

    Despite Sunday’s rebound, the bears appear relentless amid a renewed selling wave across the board.

    The VET price remains exposed to further downside risks, as the technical indicators scream sell.

    As observed on the 12-hour chart, the price is in weekly lows, having closed the candle below the upward-sloping 100-SMA critical support at $0.1730.

    VeChain has confirmed a bear cross on the said time frame, backing the weakness. The 21-SMA pierced through the 50-SMA from above, representing a bearish crossover.

    Adding credence to the additional downside, the RSI point south, heading closer to the oversold territory. The leading indicator now trades at 37.70, allowing room for more declines.

    A breach of the $0.15 demand area could trigger a sharp sell-off towards the ascending 200-SMA at $0.1160.

    VET/USD: 12-hour chart

    vet/usd chart 051721

    Alternatively, recapturing 100-SMA on a sustained basis is critical to negating the downturn.

    The VET buyers will regain complete control above that average, as they look to retest crucial upside barrier near $0.20. At that point, the 21 and 50-SMAs coincide.

    Check Out: VeChain Price Predictions

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