Dogecoin Is Losing Ground At The Start Of The Week
Dogecoin is currently trying to settle below the support level at $0.2130 while Bitcoin pulls back after major rally.
Bitcoin gained strong upside momentum after Fed Chair Jerome Powell stated that he had no intention to ban cryptocurrencies. This statement had a major positive impact on crypto markets, and traders shrugged off fears about crackdown on crypto in China.
The world’s leading cryptocurrency has recently made an attempt to settle above the significant resistance level at $48,000 but failed to develop sufficient upside momentum. In case Bitcoin settles above this level, it will move towards the psychologically important $50,000 level which will be bullish for Dogecoin and other cryptocurrencies.
Meanwhile, other cryptocurrencies are mostly moving lower together with Bitcoin, although Ethereum remains strong and is trying to settle above $3,400. It looks that traders want to take some profits off the table after the recent rally.
Dogecoin settled below the support at $0.2190 and is trying to settle below the next support level at $0.2130. RSI is 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 $0.2130, it will head towards the next support at $0.2050. A successful test of this level will open the way to the test of the support at $0.20. In case Dogecoin gets below $0.20, it will move towards the next support level which is located near recent lows at $0.1940.
On the upside, Dogecoin needs to get back above the 20 EMA at $0.2215 to have a chance to gain upside momentum in the near term. The next resistance level is located at $0.2255.
In case Dogecoin manages to settle above the resistance at $0.2255, it will head towards the next resistance at $0.23. A move above this level will push Dogecoin towards the resistance at the 50 EMA at $0.2390, although it can also face resistance at $0.2350.
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This article was originally posted on FX Empire