- Dogecoin is in stasis around $0.22 after bowing to selling pressure at $0.23.
- Cardano risks dropping to $2 due to the selling pressure at the 50-day SMA.
The cryptocurrency market barely spent 24 hours in the green, with corrections from Thursday’s highs taking precedence. Most crypto assets, especially in the top ten, are posting single-digit losses, suggesting that the upswing was merely a reaction to China’s Evergrade’s saga.
Bitcoin managed to settle above $44,000, but the movement to higher levels remains sluggish. Ethereum hit a barrier at $3,200 and is pivoting at $3,100, as reported. Similarly, Cardano is dancing at $2.29 while XRP has and Dogecoin nurse wounds at $0.98 and $0.22, respectively.
Dogecoin recovered from support at $0.19 and tested the resistance at $0.23 on Thursday. The meme-based token also lifted above the descending upper trend line, which may have boosted it closer to $0.25.
However, rising overhead pressure cut off the excitement before it began, resulting in a retracement to $0.22. As the bearish momentum keeps building, more losses are anticipated across the trading sessions on Friday.
The demand zone, marked in green, ensures that DOGE does not start exploring areas below $0.2. Besides, the MACD is gradually improving and could in the near future send a buy signal.
In the meantime, bulls are ready to fight to defend immediate support at $0.22. If this support holds, investors can start conceptualizing an uptrend, at least to $0.25, a resistance zone close to the 200-day SMA. The rest of the journey to $0.3 would be approached step-by-step; hence traders need to remain cautious.
DOGE/USD Daily Chart
Cardano is facing robust resistance at the 50-day Simple Moving Average (SMA) in its quest for recovery, at least to $2.5in the near term. The smart contract token tested the green band’s support when it briefly stepped under $2.
Higher support is required to ensure that bulls have proper backing to keep the uptrend going. However, a solid overhead push on ADA is making the least resistance path to be downward. If tentative and subtle support at $2.2 fails to hold, we can presume the bearish leg to stretch to $2.
ADA/USD Daily Chart
The RSI’s movement has been capped below the midline, implying that the selling pressure is becoming apparent. Higher support coupled with a buy signal from the MACD could save the situation. At the same time, bulls must target to close the day above the 50-day SMA. This move is bound to encourage more buyers to join the market, creating enough tail force for elevating ADA past $2.5.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.