The catastrophic collapse of FTX continues to have an impact on the cryptocurrency market, both directly and indirectly through concerns about how regulators may handle the situation. Tuesday saw a perfect storm of high-profile bankruptcies, regulatory pressure, and short selling causing most cryptocurrencies to drop to their lowest levels. But by Wednesday, the market had begun to recover. This sustained till Friday with Dogecoin ranking among the top gainers. Dogecoin swiftly reentered the top eight coins on the cryptocurrency market, surpassing Cardano as a result of the modest rally. At the time of publication, DOGE was up 12% at $0.09, ranking the eighth largest cryptocurrency with a market cap of $11.96 billion. Most cryptocurrencies, though, still needed to make up for weekly losses. However, Dogecoin had increased by 7.21% over the previous week.
Key Levels
Resistance Levels: $0.1600, $0.1400, $0.1100
Support Levels: $0.0750, $0.0650, $0.0550
DOGE/USD Daily ChartDOGE/USD maintains 24-hour gains of nearly 12 percent, moving past $0.090 levels into the weekend. By doing so, the pair is increasing rebound gains from Friday’s low of $0.0806 as well as from the five-day low of $0.0714. The latter resulted from increasing the risk bias, which eroded Dogecoin bears and kept them supportive.
A breach of the $0.0922 level may extend the $0.0806 level rebound phase across $0.100 resistance levels. Furthermore, medium- to long-term activity around $0.0750/$0.1000 levels may persist for some time. Overall, if a breakout occurs, the $0.1500 level will be simple to reach.
DOGE/USD 4-hour ChartOn the 4-hour time frame, the end of a decline to the level of $0.0714 is implied by the DOGE/USD breach of the minor resistance level at $0.090. Toward attaining the level of $0.100, the intraday bias must change back to the upside. A test at the resistance level of $0.1400 may then be approached by a run.
However, broader trading activities from the $0.0850 level are still ongoing, and the downside may be restrained by a downward retraction from the $0.0800 to $0.0750 rebound levels. On the other hand, below the $0.0750 level, the bias may shift to the downside for the $0.0550 support level.
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