Dogecoin Attempts To Rebound After Strong Sell-Off

Dogecoin Tries To Settle Back Above $0.29

Yesterday, Dogecoin found itself under strong pressure after Bitcoin failed to settle above the key resistance level at $50,000. Today, Dogecoin is trying to recover from the sell-off, but it has not developed material upside momentum.

Meanwhile, Bitcoin is trying to stay above the nearest support level at $48,000. In case this attempt is successful, Bitcoin will get to another test of the resistance at $50,000 which will be bullish for the whole crypto market. A move below $48,000 will push Bitcoin towards the next support level which is located a the 20 EMA at $46,000. In this scenario, Dogecoin may find itself under more pressure.

Technical Analysis

Dogecoin managed to get back above the 20 EMA at $0.2860 and is trying to settle above the next resistance level which is located at $0.29. RSI has moved away from the overbought territory after the recent sell-off, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case Dogecoin manages to settle above $0.29, it will get to another test of the next resistance level at $0.2950. A successful test of the resistance at $0.2950 will push Dogecoin towards the next resisance at $0.3050.

If Dogecoin manages to settle above $0.3050, it will head towards the resistance level at $0.3150. A move above this level will open the way to the test of the resistance at $0.33.

On the support side, a move below $0.29 will push Dogecoin back towards the support level which is located at the 20 EMA at $0.2860. In case Dogecoin declines below the 20 EMA, it will head towards the next support level at the recent lows at $0.2770. A successful test of this level will open the way to the test of the next support at $0.2670. The 50 EMA is located in the nearby, so Dogecoin may get strong support near $0.2670.

For a look at all of today’s economic events, check out our economic calendar.