Dogecoin Is Under Pressure
Bitcoin has recently made several attempts to settle above the key resistance level at $50,000 but these attempts yielded no results. This is a worrisome development for crypto bulls as near-term market sentiment depends on whether the world’s leading cryptocurrency manages to settle above this psychologically important resistance level.
In case Bitcoin fails to settle above the $50,000 level, it will move closer to its 20 EMA at $47,500. A move below the 20 EMA may lead to a sell-off which will be bearish for most cryptocurrencies, including Dogecoin.
It should be noted that Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, continues to decline which shows that traders’ interest in altcoins is increasing. However, the continuation of this trend will not help Dogecoin and other altcoins in case Bitcoin gains significant downside momentum.
Dogecoin failed to settle above $0.30 and pulled back. It has managed to get below $0.2950 and is trying to settle below the next support at $0.29. In case this attempt is successful, Dogecoin will move towards the support which is located at the 20 EMA at $0.2860. RSI remains in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.
A successful test of the support at the 20 EMA will open the way to the test of the support at $0.2770. If Dogecoin declines below this level, it will move towards the support at the 50 EMA at $0.27.
On the upside, a move above $0.2950 will push Dogecoin back towards the resistance at $0.30. If Dogecoin settles above this level, it will head towards the next resisance at $0.3050. A successful test of this level will push Dogecoin towards the next resistance at $0.31. In case Dogecoin settles above $0.31, it will head towards the resistance at $0.3150.
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This article was originally posted on FX Empire