Dogecoin Tumbles Amid Broad Sell-Off In The Crypto Markets

Dogecoin Retreats As Bitcoin Moves Towards The Support At $32,000

Dogecoin gained strong downside momentum and made an attempt to get to the test of the support level at $0.25 while other cryptocurrencies also found themselves under strong pressure.

Bitcoin declined below the support level at $35,000 and moved closer to the next support at $32,000. In case Bitcoin manages to settle below $32,000, it will gain additional downside momentum and head towards the psychologically important $30,000 level which will be bearish for Dogecoin and other cryptocurrencies.

Meanwhile, Ethereum declined towards the $2,000 level while XRP made an attempt to settle below the support at $0.70.

While some analysts point to the continued crackdown on miners in China as the reason for the crypto market sell-off, and looks that the recent flight to safety in most global markets, which was caused by the sudden change of Fed’s tone, served as the main catalyst for the current weakness.

Technical Analysis

Dogecoin managed to settle below the support at $0.28 and made an attempt to get to the test of the next support level which is located at $0.25. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Dogecoin declines below the support at $0.25, it will head towards the next support level at $0.2250. A successful test of the support at $0.2250 will push Dogecoin towards the next support at $0.2150.

On the upside, the previous support level at $0.28 will serve as the first resistance level for Dogecoin. In case Dogecoin manages to get back above this level, it will head towards the resistance at $0.30. A move above this level will indicate that Dogecoin will try to get back to the upside mode.

From a big picture point of view, Dogecoin looks weak, and it will need material upside catalysts to rebound from current levels.

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This article was originally posted on FX Empire

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