Dogecoin Tests Support At $0.20 As Bitcoin Remains Under Pressure

Dogecoin Continues To Move Lower

Dogecoin is currently trying to settle below the support level at $0.20 while Bitcoin is moving towards the support level at $41,300.

The world’s leading cryptocurrency has recently faced strong resistance at $44,000 and pulled back below $42,000. In case Bitcoin settles below the nearest support at $41,300, it will gain additional downside momentum and get to the test of the psychologically important support at $40,000 which will be bearish for the whole crypto market.

Other cryptocurrencies are also under pressure. Ethereum failed to settle above the $3,000 level and declined towards $2,900. XRP faced strong resistance near $0.95 and moved below $0.93.

Technical Analysis

Dogecoin continues its attempts to settle below the support level at $0.20. This support level has already been tested several times and proved its strength. It is an important moment for Dogecoin bulls as failure to hold the support at $0.20 may lead to a sell-off.

In case Dogecoin manages to settle below the support at $0.20, it will move towards the next support level which is located at $0.1940. RSI remains in the moderate territory, and there is enough room to develop additional downside momentum in case the right catalysts emerge.

If Dogecoin declines below the support at $0.1940, it will head towards the next support at $0.1910. A move below this level will open the way to the test of the support at $0.1865.

On the upside, Dogecoin needs to stay above $0.20 to have a chance to develop upside momentum in the near term. The next resistance level for Dogecoin is located at $0.2050. In case Dogecoin gets above the resistance at $0.2050, it will continue its upside move and head towards the resistance at $0.2130.

A successful test of the resistance at $0.2130 will open the way to the test of the resistance at $0.2190. If Dogecoin settles above this level, it will head towards the resistance at $0.2255.

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This article was originally posted on FX Empire

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