Key Takeaways:
- Cryptocurrency market painted a minor recovery on Dec 14.
- However, bearish pressure against SHIB, XRP, and ADA persists, forcing losses.
PATNA (CoinChapter.com) — The cryptocurrency market plummeted after the Fed announced a 0.5% hike in interest rates. Shiba Inu coin (SHIB), Ripple (XRP), and Cardano (ADA) price faced significant selling pressure near immediate resistance, with BTC and ETH reversing their day’s gains.
The slightly favorable US CPI data had led investors to hope for a slightly dovish approach from the US central bank. However, a 0.5% hike is still 25 basis points lower than analysts had speculated, hinting a slight softening in the Fed’s stance on inflation.
SHIB Bulls Defending Lower Levels
Meme token Shiba Inu coin has been painting long lower wicks on its daily candles, suggesting that bulls are pushing back near the lower price levels. However, since Sept, SHIB price has been moving inside a descending parallel channel.
The upper trendline of the channel has rebuffed SHIB price action multiple times. On Dec 14, buyers tried to push the Shiba Inu coin price above the descending trendline resistance. If bulls succeed, SHIB price will needle above the trendline to challenge resistance from its 20-day EMA (red wave) near $0.0000094.
Breaking and consolidating above the trendline resistance might help the Shiba Inu coin rise to resistance near $0.00001 before downside corrections pare gains.
On the other hand, the bearish pressure might force SHIB price to retrace a path to the lower trendline support of the parallel channel. Bulls would likely rally around to defend support near $0.0000087.
But, if SHIB price breaches below immediate support. The crypto token would likely fall to $0.0000082 before recovering.
SHIB price swung 2.5% on Dec 14, forming a high near $0.00000928 before retreating. Meanwhile, the momentum oscillator MACD turned bullish for Shiba Inu coin price.
Positive bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) moves away from the MACD signal line (9-day EMA of MACD). Expanding positive bars indicate increasing bullish momentum for SHIB price action.
Nearly Half Of Shiba Inu Coin Supply Now In Dead Addresses
Since the meme token introduced a burn mechanism on its network, Shiba Inu coin holders have been enthusiastically burning SHIB tokens. Burning involves sending tokens to an address that no one can access, effectively taking the tokens out of circulation.
Shiba Inu fans hope the burn mechanism will help SHIB price reach the much-awaited 0.1 cent price tag.
Although SHIB tokens supply is declining rapidly, the market still has more than 562 trillion Shiba Inu coin in circulation. The ecosystem would need to remove nearly 90% of its circulating supply before it can dream of a $0.001 price tag.
At the present burn rate, it will take nearly 15-20 years for Shiba Inu to burn 90-95% of its supply. Additionally, the SHIB burn rate dropped by 90.99% in the last 24 hours (at press time), with 2 million SHIB coin burned since Dec 13.
However, SHIB does not lack followers. David Gokhshtein, CEO of PAC Protocol and founder of Gokhshtein Media, said in a tweet he believes SHIB might touch $0.001. However, Gokhshtein didn’t speculate on a time frame and asserted that the meme token might never reach $1.
Also Read: Toncoin (TON) Price Rallies 15%, Why The Bulls Are Not Done Yet
In other news, Shiba Inu coin lead developer Shytoshi Kusama changed his Twitter bio to “on the 1st day…my true love gave to me…” providing fuel to the rumor mills. However, speculators believe the bio might hint at a timeframe for an upcoming Shiba Inu project, like Shibarium.
Cardano Eyeing 111% Gains As ADA Forms Bullish Wedge Pattern
Cardano’s ADA token has formed a bullish pattern called the falling wedge. The pattern forms when a token’s price bounces between two downward-sloping, converging trendlines. The volume of the asset decline as the channel converges.
Following the consolidation, once buyers move in, the asset would need to break above the upper trendline with high volumes to confirm the pattern.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Hence, the rules of technical analysis forecast a price target of $0.658 for ADA, which would translate into a 111% jump from current price levels.
However, it would likely be near the end of Q1 2023 when (if) ADA confirms the wedge pattern.
ADA Price Action Nearly Flat
ADA price has been crabbing since Nov 20. Long wicks on the Cardano token’s daily candles suggest bulls have been fighting against the selling pressure. But ADA price needs to start an uptrend with good volumes to confirm the wedge pattern.
The Cardano token fell 3.1% to form a low near $0.306 before bulls reclaimed some of the lost ground. ADA must cross above the 20-day EMA (red wave) before challenging resistance near $0.325.
A break and hold above immediate resistance might help ADA target resistance from its 50-day EMA (purple wave) near $0.34 before bears force corrections.
Conversely, ADA price might end up testing support near $0.3 if bulls fail to handle the selling pressure. Moreover, breaching below immediate support might put ADA at risk of invalidating the wedge pattern, inviting sell-off risks. Hence, the Cardano token might fall to $0.28 before recovering.
Meanwhile, the relative strength index remains neutral for ADA, clocking at 42.77 on the daily charts.
1,151 Projects Have Chosen Cardano
The latest Cardano Weekly Report stated that 1,151 projects are building on the blockchain platform. Additionally, there are currently (as of Dec 9) 108 projects launched on Cardano and 56.3 million transactions.
The figures have significance as, despite ADA’s recent bearish price action, Cardano has not lost developers’ interest.
Additionally, Cardano founder Charles Hoskinson had said that the blockchain platform would enter the Voltaire era “soon,” marking the fifth and final stage of Cardano’s development roadmap.
Also Read: Bitcoin risks a drop to $15K amid Binance FUD, despite bullish cues from Fed
Voltaire would introduce voting and a treasury system, helping Cardano transform into an independent network. The blockchain platform launched Catalyst, a decentralized governance project.
With the presence of multiple bullish fundamentals, it seems likely that ADA might break into a bull run soon. Furthermore, the token’s recent bearish price action might result from a wider crypto market downtrend and not a lack of fundamentals.
Ripple’s XRP Price Struggles To Break Above $0.4
Ripple’s native token XRP has failed to hold above $0.4 since Nov 8. XRP prices fell nearly 2% to form a low of $0.388 before bulls recovered some losses. The resistance from XRP’s 50-day EMA (purple wave) near $0.4 remains crucial for XRP if bulls want the token to start an uptrend.
Breaking and consolidating above immediate resistance would help XRP price reach resistance near $0.43 before downside corrections pare gains.
Momentum oscillator MACD has turned bullish for XRP. Positive bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) moves away from the MACD signal line (9-day EMA of MACD).
Expanding positive bars indicate increasing bullish momentum for the Ripple token’s price action.
However, if XRP price fails to needle above immediate resistance, the Ripple token would likely surrender its gains since Nov 23 and fall to support near $0.38. Strong selling pressure might result in XRP price dropping to $0.361 before recovering.
Ripple Going For Settlement Rumors Haunt The Internet
Meanwhile, rumors on the internet suggest Ripple might be moving to settle its legal battle with the Securities and Exchange Commission. In a YouTube AMA session on Dec 10, Cardano founder Charles Hoskinson stated that he heard rumors of a settlement in the Ripple-SEC lawsuit as early as Dec 15.
The crypto Twitter weighed in on the matter, with the majority stating that a settlement would be a “worst-case scenario.”
However, former federal prosecutor James Filan had asserted that the Ripple-SEC judgment would likely come on or before Mar 2023. The investing community might view a settlement, especially an unfavorable one, as a loss for Ripple, which would translate as a bearish cue for XRP price.
Additionally, Ripple has been expanding its presence in Europe, which speculators believe is a way to lessen the impact of a loss in its battle with the SEC. The regulatory body has oversight in the US only.
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