Dogecoin Rebounds As Support At 50 EMA Stays Strong
Dogecoin Moves Higher While Bitcoin Gets Back To $48,000
Dogecoin received strong support near the 50 EMA at $0.2670 while Bitcoin rebounded towards the $48,000 level after yesterday’s sell-off.
Yesterday, Bitcoin made an attempt to settle below the 20 EMA at $47,000 after another attempt to get above the psychologically important resistance level at $50,000 yielded no results. Bitcoin failed to gain sufficient downside momentum and rebounded closer to the nearest resistance level at $48,000.
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In case Bitcoin manages to get back above the resistance at $48,000, it will have a good chance to get to another test of the resistance at $50,000 which will be bullish for Dogecoin and other cryptocurrencies.
It should be noted that Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, continues to move lower. Currently, Bitcoin Dominance is trying to settle below multi-week lows at 43%. This move shows that traders’ interest in altcoins remains strong, which is bullish for Dogecoin. However, Dogecoin’s near-term dynamics will still depend on whether the world’s leading cryptocurrency manages to settle above the key resistance at $50,000.
Technical Analysis
Dogecoin failed to settle below the support at the 50 EMA at $0.2670 and rebounded towards the nearest resistance level at $0.2770. In case Dogecoin manages to settle above this level, it will head towards the next resistance which is located at $0.2860, although it can also face some resistance at the 20 EMA at $0.2830.
A move above the resistance at $0.2860 will open the way to the test of the resistance at $0.29. If Dogecoin settles above $0.29, it will continue its upside move and head towards the resistance at $0.2950.
On the support side, a move below the 50 EMA will push Dogecoin towards the support level at $0.2615. A successful test of this level will open the way to the test of the support at $0.2570. If Dogecoin declines below $0.2570, it will head towards the support at $0.2520.
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