The crypto market is not showing signs of life this week, after a few attempts to turn bullish in the previous weeks, which failed. The only digital coins which remain bullish this week are Fantom (FTM) and Internet Computer Protocol (ICP). Cardano and Shiba Inu Remain two of the most bearish coins, but this devaluation is not such a bad thing after all, since it makes them cheaper, offering a better risk-reward ratio.
Cardano Daily Chart Analysis – ADA Heading Toward $1 Support
ADA/USD has been one of the weakest cryptocurrencies since September. In August we saw a decent rally which took the price from $1 to $3, as the Alonzo upgrade launch date was approaching. But, Alonzo failed to generate much interest, even though this update means that Cardano will have more real use cases, since it allows users to create and deploy “smart contracts” on the Cardano blockchain.
So, ADA/USD has been on a steady decline since September, with moving averages acting as resistance, particularly the 50 daily SMA (yellow). ADA coin fell below $1.50 which used to be resistance and now it seems to be heading for the support level at $1. Although, this whole area is a good zone to build Cardano long positions, hoping that the sentiment in the crypto market will turn bullish soon. If ADA/USD falls to $1, then we would be tempted to open a buy trade so we are following the price action.
Shiba Inu Daily Chart Analysis – Waiting to Buy at $0.000030?
Shiba Inu coin missed the bullish rally in the crypto market during August, but it surged more than 10 times in October all of a sudden, which came in two waves. First, the price surged to $0.000030, then after consolidating there for some time, the bullish momentum resumed again and the price surged again to $0.000090.
The support zone at $0.000030 holds for Shiba
But, the sentiment turned negative in the crypto market and Shiba Inu started to reverse at the end of October, which continues to remain bearish. Although, it seems like the previous resistance at $0.000030 has now turned into support. We saw a bounce off that zone late last month, but the 50 SMA stopped the jump and the price is returning to it again. So, we are thinking about buying SHIB/USD at that support zone. The memecoin has planned to launch its very own DAO, DOGGY DAO this year, with the goal of achieving true decentralization and taking away control from its developers. This should bring attention back to Shiba and help it reverse higher.