Dogecoin Starts The Week On A Strong Note


Support At $0.21 Stays Strong

Dogecoin received support at $0.21 and is trying to move back above $0.22 while crypto markets are moving higher at the start of the week.

Bitcoin has recently managed to get above the 20 EMA at $34,400 and has a good chance to get to the test of the resistance level at $35,000. If Bitcoin manages to settle above $35,000, it will head towards the resistance at $36,000 which will be bullish for the whole crypto market.

It should be noted that recent trading sessions have been calm for Dogecoin and other cryptocurrencies, and it looks that crypto markets need additional catalysts to get upside momentum.

Traders will continue to follow the dynamics of the world’s leading cryptocurrency, Bitcoin, which remains stuck in the $32,000 – $35,000 range. If Bitcoin manages to get out of this range, trading activity at crypto markets will increase.

At this point, Dogecoin lacks catalysts, but the situation may change quickly if Bitcoin settles above the resistance at $35,000 and traders rush to buy other cryptocurrencies in order to join the potential upside trend.

Technical Analysis

Dogecoin is currently trying to get to the test of the nearest resistance level which is located at $0.2250. If Dogecoin manages to settle above this level, it will gain additional upside momentum and head towards the resistance at the 20 EMA at $0.24.

A successful test of the resistance at the 20 EMA will open the way to the test of the next resistance at $0.25. If Dogecoin settles above $0.25, it will move towards the resistance at the 50 EMA which is located near $0.2750.

On the support side, the nearest support level for Dogecoin is located at $0.21. A move below this level will push Dogecoin towards the support at $0.20. In case Dogecoin declines below $0.20, it will head towards the support at $0.1650. No important levels were formed between $0.1650 and $0.20 so this move may be fast.

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

This article was originally posted on FX Empire


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