Key Takeaways:
- Cryptocurrency prices started the week on a bearish note.
- SHIB, DOGE, and LINK prices have fallen over the past week.
- Moreover, LINK prices have formed a bearish pattern with a -68% price target.
NEW DELHI (CoinChapter.com) — The cryptocurrency market started the week on Oct 10 in the red, with Bitcoin (BTC) prices falling below $19,500. Meanwhile, Ethereum (ETH) prices remained groggily above $1,300, with indications that ETH might drop below the key support level.
Not just the biggest cryptos but the wider crypto market itself saw red on Oct 10.
1. SHIB/USD
Dogecoin rival Shiba Inu prices have been in a downtrend since Oct 5. The memecoin has lost more than 10% of its value from Oct 5’s high of $0.0000118. Moreover, SHIB prices fell nearly 4.4% on Oct 10 between intraday high ($0.00001112) and low ($0.00001063) levels.
Even the launch of Shiba Eternity, a collectible card game, failed to raise the spirits of the canine-themed meme coin.
SHIB prices have been forming lower highs since mid-Aug, trading below a multi-month descending trendline resistance. If the downtrend continues, SHIB prices will likely fall to test support near $0.0000105.
Additionally, a marketwide downtrend could result in SHIB prices testing key support near $0.000099, which the token has tested thrice since Jun this year.
Meanwhile, the relative strength index for the altcoin is currently neutral, with a value of 40.03 on the daily timeframe. However, the RSI trendline is moving down toward the oversold threshold. Traders usually consider an oversold RSI a buy signal.
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Hence, if the traders start buying, the resulting uptrend could see SHIB prices challenge resistance from the descending trendline and the 20-day exponential moving average (20-day EMA, red wave) near $0.00001137.
A move above immediate resistance would likely help SHIB prices target resistance from their 100-day EMA (blue wave) near $0.00001221 before retreating.
2. DOGE/USD
The pioneer meme token, Dogecoin, has painted a chart similar to its rival, Shiba Inu, as it shed more than 14% of its prices between Oct 5’s high ($0.07) and Oct 10’s low ($0.06) levels.
But the meme token has been charting higher lows over the past few weeks with support from an ascending trendline. The relative strength index for DOGE is neutral, clocking at 45.83 on the daily timeframe.
However, the RSI trendline is careening downwards and might soon become oversold. As traders consider an oversold RSI a buy signal, DOGE prices might bounce above their 20-day EMA (red wave) to challenge the 50-day EMA (purple wave) near $0.064.
A move above immediate resistance could provide DOGE prices the impetus to challenge resistance from its 100-day EMA (blue wave) near $.069 before corrections pare gains.
Conversely, if DOGE prices break below the ascending trendline support, the meme token’s prices could fall to $0.057, which has previously supported Dogecoin’s price action multiple times since Jul this year.
A marketwide sell-off might result in DOGE prices falling nearly 12% from current levels to $0.053 before recovering.
3. LINK/USD
Chainlink’s LINK token has formed a bearish pattern called the bear pennant, which forecasts more bearish pressure for the altcoin’s prices.
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Pennants are continuation patterns. They form when a period of consolidation with converging trendlines follows a large movement in a cryptocurrency’s 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.
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. Hence, LINK prices might fall to $2.37, more than 68% from current levels.
LINK Price Chart
LINK prices arrested their downtrend on Oct 8 and have been moving laterally since then. The prices of the crypto token fell nearly 4.1% between intraday high ($7.7) and low ($7.39) on Oct 10.
But, long wicks on either end of the day’s candle indicate that both bulls and bears are aggressively vying for control over LINK prices. Bulls must push the crypto token’s prices above their 100-day EMA (blue wave) resistance near $7.78 to start an uptrend.
A move above immediate resistance might help LINK prices reach $8.16 before corrections pare gains.
On the other hand, if the downtrend continues, the crypto token prices might fall to support near $7.1. Additionally, a marketwide sell-off could result in LINK prices falling to $6.72 before prices recover.
Meanwhile, LINK’s RSI remains neutral, clocking at 50.5 on the daily charts.
Ripple’s XRP is last week’s star crypto performer. Read here to know more.
