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Dogecoin Tries To Stabilize After Upside Move
Dogecoin has recently made an attempt to settle above $0.35 but lost momentum after a major rally and pulled back towards $0.34.
Meanwhile, Bitcoin received strong support near the $46,000 level and is testing the resistance level which has recently emerged at $48,000. In case Bitcoin manages to settle above the resistance at $48,000, it will gain additional upside momentum and head towards the psychologically important resistance level at $50,000 which will be bullish for the whole crypto market.
It should be noted that Bitcoin Dominance, which measures Bitcoin’s market capitalization as a percentage of total crypto market capitalization, has recently managed to settle below the 45% level and continues to move lower. The recent developments indicate that traders remain interested in altcoins which is bullish for Dogecoin.
Technical Analysis
Dogecoin gained strong upside momentum after it managed to get above $0.30 but faced resistance near $0.35. Currently, Dogecoin is trying to stabilize between the nearest support level, which has emerged at $0.33, and the resistance at $0.35.
RSI has reached multi-month highs which means that the risks of a pullback are significant. In case Dogecoin manages to settle below the support level at $0.33, it will move towards the next support at $0.3150. A successful test of the support at $0.3150 will push Dogecoin towards the next support level at $0.2950. No material levels were formed between $0.2950 and $0.3150 so this move may be fast.
On the upside, Dogecoin needs to settle above the resistance at $0.35 to continue its upside move. The next resistance level for Dogecoin is located at $0.36. In case Dogecoin manages to settle above this level, it will head towards the next resistance level which is located at $0.38. A move above $0.38 will open the way to the test of the resistance at $0.3950. It should be noted that cryptocurrencies are very dependent on momentum so Dogecoin has decent chances to continue its upside move despite high RSI.
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This article was originally posted on FX Empire
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