- Shib price gathers strength for the next upswing, awaits confirmation of falling channel breakout.
- Polkadot snaps the uptrend, $13.60 key support back in sellers’ sight amid bearish RSI and death cross.
- Death cross on the daily chart recalls Stellar bears, as a five-day recovery rally fizzles out.
Bitcoin’s journey towards the $40,000 level came to an abrupt halt on Thursday, as downbeat comments from a US Congressman outweigh optimism over the increasing adoption of the world’s most traded cryptocurrency.
The bearish undertone grappled investors, fuelling a fresh selling wave across the crypto market. US congressmen Brad Sherman (D-CA) appealed for shut down of digital assets in a hearing on June 30, adding that cryptocurrencies are used to “circumvent KYC” and are supported by “anarchists who are rooting for tax evasion.”
Earlier on, the crypto space cheered the news that Atlanta-based NCR Corporation struck a deal with NYDIG, a digital asset management firm, to offer Bitcoin purchases to its customers spread across 650 banks in the US. The new alliance is expected to reach 24 million customers through the banks that NCR services.
The dark cloud has hit the DeFi tokens as well, as some of the widely watched coins are witnessing a shift in the sentiment, favouring the bears. The Dogecoin spin-off, Shiba Inu, has brought a halt to the rally-inspired by the tweet from Elon Musk, founder of Tesla Inc. Musk tweeted out over the weekend, "My Shiba Inu will be named Floki”, after which the SHIB price took off 16% to the clinch multi-week highs.
How are these three trending DeFi tokens positioned graphically?
Shiba Inu: Turns south after rejection at this critical level, what next?
Shiba Inu is falling for the first time in six trading sessions this Thursday, as it gets engulfed into a selling wave seen across the crypto board.
In doing so, the SHIB price has stalled its blistering recovery from the previous week’s lows of $0.000005202. The upswing is in the canine-inspired coin was triggered by the billionaire Elon Musk’s tweet.
The latest turn in Shiba Inu towards the south comes after the price failed to find acceptance above the powerful supply zone around $0.0000090.
That level is the confluence of the downward-sloping 50-Daily Moving Average (DMA) and falling channel resistance.
Note that SHIB price has been wavering inside a falling channel formation on the daily sticks, with bulls yearning to find a foothold above the aforesaid critical resistance, in order to validate a channel breakout.
Should the upside breakout from the falling channel pattern materialize, a rally towards the $0.000010 psychological mark will be on the buyers’ radars.
Further up, SHIB bulls could flex their muscles to probe the May 24 high at $0.000012222.
The 14-day Relative Strength Index (RSI) has turned south, backing the latest leg down in the price. However, the leading indicator still remains above the 50.00 level, keeping the bullish traders hopeful.
SHIB/USDT: Daily chart
On the flip side, the buyers could scout for immediate support at the mildly bullish 21-DMA at $0.000007510.
Sellers will seek fresh entries on a decisive break below the latter, exposing the next relevant support at $0.000006203, which is the ascending 50-DMA.
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Polkadot: Sellers continue to lurk above the $16-mark, bearish reversal on the cards?
Having faced rejection above the $16 mark for the third day in a row, Polkadot sellers seem to have returned on Thursday, reversing almost half of this week’s advance.
DOT price jumps back on the offers after failing to extend the bounce from near the $13.60 region, where the bulls have found strong bids over the last month.
That line of defense aligns at the May 23 and previous week’s low forming strong support on the daily graph.
A daily closing below that level could spark a sharp downswing towards the $10 round number.
With the RSI pointing south below the midline, the renewed selling interest in DOT price is likely to extend in the near term.
So to speak, DOT bears had been gearing up for a downturn, especially after the price confirmed a death cross the said time frame on June 26.
A death cross is a signal of bearish reversal and occurs when the 50-DMA pierces through the 200-DMA from above.
DOT/USD: Daily chart
If the abovementioned crucial support holds, Polkadot buyers could get another life to retest the bearish 21-DMA hurdle at $18.72.
Although, the altcoin will need to reclaim ground above the $16 level, in order to unleash the recovery towards the 21-DMA.
To conclude, DOT price could waver in a tight range between the 21-DMA and horizontal (dashed) trendline support until a breakout in either direction is achieved.
But the odds are seen in favor of a downside breakout amid a bearish RSI and death cross.
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Stellar: 21-DMA remains a tough nut to crack for bears amid a death cross
Stellar Lumens is posting a nearly 6% loss so far this Thursday, tracking the bearish sentiment across the crypto market.
XLM price is correcting from weekly highs of $0.3012 reached on Tuesday after the bulls were unable to hold onto the recent upbeat momentum.
Wednesday’s doji candlestick on the daily chart signaled buyers’ exhaustion after four straight days of gains, which could be associated with the drop, thus far.
The downturn also comes after several failed attempts to convincingly recapture the descending 21-DMA at $0.2842. That level is a meeting point of the 21-DMA and the falling wedge upside hurdle.
Adding credence to the move lower, XLM price spotted a death cross while the RSI stalled its recovery mode. The momentum indicator falls back to test 40.00 after hitting a roadblock just shy of the 45.00 level.
Therefore, the horizontal (orange) trendline, connecting the recent lows, at $0.2256 remains in sight of the bearish traders.
Further south, the falling wedge support at $0.1834 could come into play.
XLM/USD: Daily chart
Alternatively, if the powerful resistance at $0.2842 is taken out on a daily closing basis, the falling wedge pattern will get validated, opening doors towards the $0.35 threshold.
The convergence of the 50 and 200-DMAs around $0.3870 will be a level to beat for the XLM bulls.