Dogecoin Tries To Rebound After Yesterday’s Sell-Off
Dogecoin is currently moving towards the resistance level at $0.2770 while Bitcoin is trying to stay above the $47,000 level.
Yesterday, Dogecoin found itself under strong pressure after Bitcoin failed to settle above the key resistance level at $50,000 and moved lower.
It looks that near-term dynamics of Dogecoin will depend on whether Bitcoin manages to get back towards the resistance level at $50,000. In case Bitcoin continues to trade under the nearest resistance level at $48,000, Dogecoin and other cryptocurrencies may find themselves under more pressure.
General market news may also impact trading in Dogecoin and other cryptocurrencies today. Fed Chair Jerome Powell is scheduled to speak at the Jackson Hole Symposium, and markets will pay attention to any signals about the upcoming reduction of Fed’s asset purchase program.
If Powell is dovish enough, riskier assets should get more support which will be bullish for crypto markets. In case Powell disappoints markets and starts talking about the reduction of the asset purchase program, riskier assets will find themselves under pressure. In this scenario, cryptocurrencies may suffer a significant sell-off.
Dogecoin failed to settle below the 50 EMA near $0.2650 and is trying to get to the test of the resistance level which is located at $0.2770.
In case Dogecoin manages to settle above the resistance at $0.2770, it will head towards the next resistance level at the 20 EMA at $0.2840. A move above the 20 EMA will push Dogecoin towards the resistance at $0.29. If Dogecoin settles above $0.29, it will head towards the resistance which is located near the recent highs at $0.2950.
On the support side, Dogecoin needs to settle below the 50 EMA to continue its pullback. The next support level is located at $0.2620. If Dogecoin declines below this level, it will head towards the support at $0.2565. A successful test of this level will open the way to the test of the support at $0.2525.
For a look at all of today’s economic events, check out our economic calendar.