Cryptocurrency Price Prediction: Shiba Inu (SHIB), Ripple (XRP), Polkadot (DOT), Algorand (ALGO)

Key Takeaways:

  • Cryptocurrency prices continue to suffer from the fallout of the FTX collapse.
  • Tokens like XRP, DOT, and SHIB painted bearish continuation patterns, while ALGO price went against market trend.
Cryptocurrency prices continued dropping in the aftermath of crypto exchange FTX's collapse
Cryptocurrency prices continued dropping in the aftermath of crypto exchange FTX’s collapse. Image from freepik and cryptologos

NEW DELHI (CoinChapter.com) — The cryptocurrency market had barely survived the Terra collapse before the FTX contagion crippled the already stuttering recovery of the sector. Crypto tokens like XRP, DOT, and SHIB struggle to rise, while a few tokens like ALGO registered gains on Nov 18.

The FTX collapse made a massive dent in investor confidence. Moreover, the crisis resulted in a massive liquidity crunch in the market, which could significantly lengthen the ongoing crypto winter.

A report from Coinbase noted the same, stating that the collapse of the world’s third-largest crypto exchange would likely extend the crypto market. Several institutional investors now have their investments stuck since FTX filed for bankruptcy.

Moreover, the FTX crisis might have deterred new investors from entering the market. Additionally, the report highlighted the rising stablecoin dominance. In detail, a rise in stablecoin dominance indicates that traders and investors are exiting out of crypto assets and moving towards USD-pegged stablecoin.

Meanwhile, the crypto market’s price action has led to several tokens forming a bearish pattern called the bear pennant.

1. Shiba Inu Price Prediction

SHIB price formed a bearish continuation pattern called the bear pennant. The pattern forms when a period of consolidation with converging trendlines follows a large movement in cryptocurrency prices. Then, the asset breaks out in the same direction as the large initial movement.

Volumes play an important role in verifying the pattern. Per the rules of technical analysis, consolidation should occur with lower volumes, while higher volumes should accompany breakouts.

SHIB price formed a bear pennant with a -37% price target
SHIB price formed a bear pennant with a -37% price target. Source: Tradingview.com

To confirm the pattern, SHIB volumes need to rise. Otherwise, the memecoin would continue to consolidate below $0.000009. For a bear pennant pattern, traders calculate the price target by applying the initial flagpole’s height to the point where the price breaks out from the pennant.

Also Read: Dogecoin News: DOGE Price faces 52% Drop From Bearish Pattern

As such, SHIB price might be facing a drop of 37% to $0.0000057.

The long upper wicks indicate bears are strong below the 20-day EMA (red wave). If the sell-off continues, the Shiba Inu token price might fall to support near $0.0000087. Moreover, a marketwide sell-off or confirmation of the pennant pattern might push SHIB price to support near $0.0000078.

SHIBUSD daily chart with RSI
SHIBUSD daily chart with RSI. Source: Tradingview.com

Meanwhile, the relative strength index for SHIB is neutral, with a value of 38.81 on the daily timeframe. However, the RSI is near the oversold threshold, which might attract buyers to the market.

A rally would likely help Shiba Inu price challenge resistance near $0.0000097. Moreover, a break and hold above immediate resistance could help the crypto token target resistance from its 50-day EMA (purple wave) near $0.0000106 before paring gains.

2. Ripple Price Prediction

Like SHIB, the Ripple native token, XRP, saw its price form the continuation pattern called bear pennant.

The pattern, forming when a period of consolidation with converging trendlines follows a large movement in cryptocurrency token prices, usually results in a break out in the same direction as the large initial movement.

Per the rules of technical analysis, consolidation should occur with lower volumes, while higher volumes should accompany breakouts. A breakout at low volumes would likely result in the cryptocurrency token continuing its crabbing below $0.4

XRP price formed a bear pennant pattern with a -39.5% price target
XRP price formed a bear pennant pattern with a -39.5% price target. Source: Tradingview.com

Traders calculate the price target by applying the initial flagpole’s height to the point where the price breaks out from the pennant. Hence, the XRP price might fall to $0.233, a drop of 39.5% from its current price level.

Meanwhile, XRP traders seem indecisive, as Nov 18’s long-legged Doji candle indicates. The cryptocurrency token has been crabbing since Nov 15, after gaining 10.7% on Nov 14. The Ripple token swung 4.3% between its intraday low ($0.374) and high ($0.39) levels on Nov 18.

If the XRP price starts moving upward, the Ripple token would likely challenge resistance near $0.393. A break and hold above immediate resistance could see the crypto token target resistance from the 50-day EMA (purple wave) and 100-day EMA (blue wave) confluence near $0.422.

XRPUSD daily chart with RSI and potential death cross
XRPUSD daily chart with RSI and potential death cross. Source: Tradingview.com

Additionally, the Ripple token’s recent price action might result in its 50-day EMA needling below its 100-day EMA to form another bearish pattern called the death cross. Traders usually consider the pattern an indicator of negative market sentiment and a sell signal.

Also Read: North Korea tests ICBM, threatens the US against regional security presence

A sell-off might see the cryptocurrency token fall to test support near $0.364. Moreover, a marketwide sell-off could result in the XRP price dropping to support near $0.338 before recovering.

The relative strength index of the Ripple token remains neutral, with a value of 43.04 on the daily timeframe.

3. Polkadot Price Prediction

Polkadot’s native token, DOT, painted a now familiar price action, forming the bearish continuation pattern bear pennant. The pattern often results in a break out in the same direction as the large initial movement, forecasting more bearish times in DOT’s future.

Per the rules of technical analysis, higher volumes should accompany breakouts. A breakout at low volumes would likely result in the cryptocurrency token continuing its crabbing below $6.

DOT price formed a bearish pennant with a -27% price target
DOT price formed a bearish pennant with a -27% price target. Source: Tradingview.com

Traders calculate the price target by applying the initial flagpole’s height to the point where the price breaks out from the pennant. Thus, the Polkadot token price might fall to $4.14, a drop of 27% from its current price level.

Meanwhile, DOT price has been moving laterally since Nov 10. The Polkadot token swung 2.48% between intraday low ($5.63) and high ($5.77) levels before bears pared gains. If the sell-off continues, the cryptocurrency token might fall to immediate support near $5.5.

A marketwide sell-off could see the Polkadot token price fall to $5.2 before recovering.

DOTUSD daily chart with RSI
DOTUSD daily chart with RSI. Source: Tradingview.com

Conversely, an uptrend would help the cryptocurrency token rise to target resistance near $5.9. Additionally, a break and hold above immediate resistance might see DOT price challenge resistance from its 50-day EMA (purple wave) near $6.3 before downside corrections pare gains.

Meanwhile, the relative strength index for the Polkadot crypto remains neutral, clocking at 40.78 on the daily chart.

4. Algorand Price Prediction

Algorand’s native crypto, ALGO, went against the prevailing market conditions, as the crypto jumped nearly 9% between intraday low ($0.267) and high ($0.291) price levels on Nov 18.

If ALGO price continues climbing, the crypto would likely end up challenging resistance near $0.293.

Moreover, if the Algorand crypto breaks and holds above immediate resistance, ALGO price might rise to target resistance from its 20-day EMA (red wave) near $0.313 before downside corrections pull back prices.

ALGOUSD daily chart with RSI
ALGOUSD daily chart with RSI. Source: Tradingview.com

Conversely, if traders start booking profits, the Algorand crypto might fall to test support near $0.27. Moreover, a marketwide sell-off could result in ALGO price falling to support near $0.25 before recovering.

Meanwhile, the RSI of the Algorand crypto is currently neutral, with a value of 44.4 on the daily charts.

Wondering what Tether has to do with the FTX crisis? Read here to know more.

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Cryptocurrency, Cryptocurrency Price Prediction: Shiba Inu (SHIB), Ripple (XRP), Polkadot (DOT), Algorand (ALGO)

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