Dogecoin Video 02.06.21.
Dogecoin Rallies Towards The $0.40 Level
Dogecoin gained significant upside momentum in recent trading sessions and made an attempt to settle above the resistance at $0.3990.
Other leading cryptocurrencies are also moving higher today, although I’d note that Bitcoin did not manage to gain sufficient upside momentum above the nearest resistance level at $37,000.
It remains to be seen whether altcoins will be able to move higher without the support of the leading cryptocurrency, Bitcoin, which is traditionally seen as a gauge of investors’ interest in the crypto world.
However, it looks that Dogecoin has finally managed to gain momentum after a major correction in May, which is a welcome development for Dogecoin bulls.
Dogecoin managed to settle above the 20 EMA at $0.3700 and is testing the key resistance level at $0.3990. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If Dogecoin settles above the resistance at $0.3990, it will head towards the next resistance level at $0.4150. A successful test of this level will push Dogecoin towards the next resistance at $0.4400.
On the support side, the nearest support level for Dogecoin is located at the 20 EMA at $0.3700. In case Dogecoin declines below this level, it will head towards the support at the 50 EMA at $0.3450. A move below the 50 EMA $0.3450 will signal that the current attempt to gain upside momentum has come to an end.
From a big picture point of view, the current test of the resistance at $0.3990 is very important for Dogecoin. A move above the $0.40 level will push Dogecoin back into crypto headlines which will likely attract more speculative traders and help Dogecoin gain additional upside momentum. In this scenario, Dogecoin may quickly get to the test of the above-mentioned resistance levels at $0.4150 and $0.4400.
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