Dogecoin Rebounds After Huge Sell-Off

Dogecoin Tries to Settle Above $0.20

Dogecoin found support at $0.1650 and is trying to settle back above $0.20 after the huge sell-off. Yesterday, Dogecoin gained strong downside momentum after it managed to settle below the support at $0.28. It looks that many traders rushed to exits after Dogecoin declined below $0.25, and the downside move turned into a real panic.

Today, Dogecoin is trying to rebound together with other cryptocurrencies. However, I’d note that this rebound is not strong, and some cryptocurrencies like Ethereum have already moved back into the negative territory.

Meanwhile, Bitcoin is trying to settle back above $32,000. This is an important moment for the whole crypto market. If Bitcoin fails to settle above $32,000, it will move towards the psychologically important support level at $30,000. A move below this level may lead to a sell-off which will be bearish for Dogecoin and other cryptocurrencies.

Technical Analysis

Dogecoin is currently trying to settle above $0.20. In case this attempt is successful, it will get to another test of the resistance level at $0.2150.

A move above the resistance at $0.2150 will push Dogecoin towards the next resistance level which is located at $0.2250. If Dogecoin settles above this level, it will head towards the resistance at $0.25.

On the support side, the nearest support level for Dogecoin is located at the recent lows at $0.1650. RSI is in the oversold territory, but there is enough room to develop additional downside momentum in case the right catalysts emerge.

If Dogecoin manages to settle below the support at $0.1650, it will continue its downside move and head towards the next support level at $0.1450. A successful test of the support at $0.1450 will push Dogecoin towards the support at $0.12.

I’d note that there are big gaps between levels that are located below $0.20 so traders should be prepared for fast moves in case Dogecoin develops additional downside momentum.

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