Dogecoin Tested Multi-Week Highs
Dogecoin continued to move higher while Bitcoin declined towards the $45,000 level. The world’s leading cryptocurrency failed to settle above the resistance at $46,000 and moved towards $45,000 as traders took some profits off the table after the upside move which pushed Bitcoin from $37,300 to $46,700.
Meanwhile, Ethereum faced resistance near $3,300 and pulled back towards the support at $3,125 which is not surprising after the recent rally. XRP stabilized near $1.00 after yesterday’s major upside move.
Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, continues to move lower which indicates that traders’ interest in altcoins continues to increase. This is bullish for Dogecoin which has already developed solid upside momentum.
Dogecoin is currently trying to stay $0.27. RSI is close to the overbought territory, but there is enough room to develop additional upside momentum in case the right catalysts emerge.
In case Dogecoin settles above $0.27, it will get to another test of the nearest resistance level which is located at $0.2750. A successful test of this level will open the way to the test of the next resistance at $0.2830.
If Dogecoin manages to settle above the resistance at $0.2830, it will head towards the next resistance level at $0.29. A move above this level will push Dogecoin towards the resistance level which is located near the recent highs at $0.2950.
On the support side, Dogecoin needs to get below $0.27 to have a chance to develop downside momentum in the near term. In case Dogecoin declines below $0.27, it will move towards the support at $0.2670.
A successful test of the support at $0.2670 will open the way to the test of the next support level at $0.2630. If Dogecoin settles below this level, it will head towards the support which has recently emerged at $0.2570. A move below this level will push Dogecoin towards the support at $0.25.
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This article was originally posted on FX Empire