Last week, China was a source of major negative news for the crypto market. First, China banned financial firms from crypto business. After this, the country stated that it would crack down on bitcoin mining and trading activities.
The problems of the leading cryptocurrency are bearish for the whole crypto market, and it’s not surprising to see that Dogecoin has recently made an attempt to settle below $0.30.
Today, cryptocurrencies are moving higher as speculative traders use the last week’s sell-off as an opportunity to buy crypto at lower levels. It remains to be seen whether the recent rebound will be sustainable as China looks determined to decrease the power of the crypto market, and more verbal interventions may follow in the upcoming weeks.
Dogecoin failed to settle below the support at $0.30 and is trying to get to the test of the resistance which is located at the 50 EMA near $0.3450. RSI is in the moderate territory after the recent pullback, and there is plenty of room to gain upside momentum in case the right catalysts emerge.
If Dogecoin manages to settle above the 50 EMA, it will head towards the next resistance level at $0.3700. A move above this level will push Dogecoin towards the resistance at $0.3990.
On the support side, a move below $0.30 will signal that Dogecoin is ready to continue its downside move. The next support level for Dogecoin is located at $0.28. If Dogecoin declines below this level, it will head towards the support at the recent lows at $0.25.
From a big picture point of view, Dogecoin needs to settle back above the 50 EMA to have a chance to gain upside momentum in the near term.
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