Top 3 Trending Cryptocurrencies Shiba Inu, Matic, Cardano: SHIB Price Has Room to Rise Amid Positive RSI Divergence
- Shib price testing bullish commitments on the 12H chart to confirm a reversal of the downtrend.
- Polygon’s big technical breakout on the 12H chart points to the additional upside towards $1.62.
- Cardano likely to see a continuation of the range play between two key daily averages amid neutral RSI.
Nothing seems to change starting out a fresh week, as Tesla Inc.’s founder’s tweets continue to rock the crypto markets, although this time for the betterment.
Musk’s comments came to the rescue of the volatility trades, as it lifted the crypto market sentiment and, in turn, the volatility after a couple of weeks of sluggish trades. Bitcoin sprung back to life, now back on the $40K level while Ripple nears the $1 mark.
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk tweeted out, adding that Tesla still had 90% of its initial $1.5-billion BTC purchase.
From the DeFi tokens space, Shiba Inu and Polygon (MATIC) remain a few of the top favourites amidst the market participants. The dog-themed cryptocurrency’s technical picture has revived the bullish interests so has the MATIC’s. However, the Polygon optimists remain cautious amid declining whale addresses, as revealed by the supply distribution metric.
How are the three trending DeFi tokens positioned technically?
Shiba Inu: Positive price-RSI divergence favours bulls but 21-SMA is the level to beat
Shib price is posting small gains so far this Monday, kicking off the week on the right footing. The meme coin is looking to extend the rebound into the third straight day, having witnessed bargain hunting at lower levels over the weekend.
‘Buy the dips’ strategy seems to be back in vogue across the crypto space, benefiting Shiba Inu.
The 30% bullish reversal from the critical horizontal (orange) trendline support near $0.000005400 on the 12-hour chart comes after the Shib price pierced through the range lows of around $0.000006300.
The pair bottomed at the abovementioned key cap and went on to recapture the horizontal (orange) trendline, with bulls seeking fresh above the latter.
Shib price is now on its way to test the downward-sloping 21-simple moving average (SMA), located at $0.000007364.
Acceptance above the short-term moving average will trigger a fresh upswing towards the powerful resistance around the $0.00000830.
That level is the confluence of the bearish 50-SMA and falling trendline resistance. Note that the price is trending within a falling wedge formation for the past one month.
The 14-day Relative Strength Index (RSI) is pointing north while inching closer to the midline, backing the upside case.
Adding credence to the move higher, the chart spots a positive price-RSI divergence, is usually considered as a sign of bullish reversal.
SHIB/USDT: 12-hour chart
However, if the 21-SMA limits the upbeat momentum, a swing to the south cannot be ruled for the canine-themed coin.
The price will then revert to the previous key resistance now cushion near $0.000006300, below which the wedge support at $0.000005220 will be put to test.
MATIC: Polygon bulls relentless following a falling wedge breakout on 12H chart
MATIC bulls are back in full form following a brief consolidation phase seen earlier on, as the upturn extends for the third day in a row on the first day of a fresh trading week.
The buyers look to confirm a bullish reversal after finding a local bottom around $1.15. The uptrend appears to strengthen further, given that the technical setup continues to paint a constructive outlook.
From a short-term technical perspective, MATIC price is primed to extend the uptrend towards the 50-SMA at $1.6228 on the 12-hour chart.
The bullish premise is thanks to the falling wedge formation validated on the said timeframe on Sunday after the price broke up the falling trendline resistance at $1.3650 on a 12-hourly candlestick closing basis.
At the time of writing, MATIC/USD is rising 6.30% to near $1.5400, heading towards an immediate upside barrier at the $1.60 round number.
The RSI holds firmly higher above the central line, currently at 51.99, allowing room for more advances.
MATIC/USD: 12-hour chart
If the Polygon bulls face rejection at the 50-SMA hurdle, the price could drop back to test the 21-SMA previous resistance now support at 1.4718.
The next line of defense awaits at the upward-pointing 100-SMA at $1.3587. Further south, the bearish wedge resistance-turned-support, now at $1.3020, could be back on the sellers’ radars.
To conclude, MATIC’s path of least resistance appears to the upside, as bulls remain in total control.
Cardano: Bulls yearning to break the range play, will they succeed?
Ever since the recent slide to two-week troughs of $1.3181, ADA price has entered a consolidative mode, wavering a prison range of $0.34.
Cardano seemingly lacks any clear directional bias, as a tug-of-war between the bulls and bears extends into a fourth consecutive day on Monday.
Despite the third day of rebound, the ADA bulls await a strong catalyst for a range breakout in either direction, with those odds at coin flip levels. The same is indicated by the momentum indicator, the RSI, trading flat at the 50.00 level.
The so-called Ethereum killer continues to waver between the 100-Daily Moving Average (DMA) at $1.4007 on the downside while $1.6168 protects the bearish interest. The latter is the convergence of the 21 and 50-DMAs.
A daily closing above the last is critical to yielding a range breakout, with the upside opening up towards the June high of $1.7850.
Further north, the horizontal trendline resistance connecting the previous highs, at $1.8837, could be threatened.
ADA/USD: Daily chart
However, a firm closing on the daily candlestick basis below the 100-DMA could invalidate the bullish reversal, exposing the May 23 low of $1.0431.
The line in the sand for the ADA bulls is seen at around $0.9200, the intersection of the ascending 200-DMA and the May 9 flash crash low.
Don't Miss: Can Cardano Make Me Rich?