Dogecoin Rebounds As Bitcoin Gets Back Above $30,000

By:

Vladimir Zernov

Published: Jul 21, 2021, 08:13 GMT+00:00

Dogecoin received strong support near $0.1650.

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Dogecoin Gets Back To $0.18

Dogecoin failed to settle below the important support level at $0.1650 and rebounded towards $0.18 while Bitcoin returned back above the key $30,000 level.

Yesterday, Bitcoin made a serious attempt to settle below the psychologically important support level at $30,000 which put pressure on the whole crypto market.

It looks that Bitcoin’s recent downside move attracted enough buyers who wanted to bet that the world’s leading cryptocurrency would fail to settle below $30,000, so Bitcoin managed to rebound.

Dogecoin and other coins are rebounding faster than Bitcoin. Ethereum is currently trying to get to the test of the $1900 level while XRP is trying to get above $0.55.

If Bitcoin continues its rebound, Dogecoin and other cryptocurrencies will get more support. In my opinion, they will have a good chance to develop additional upside momentum in this scenario as speculative traders would rush to buy the “failed breakout”.

Technical Analysis

Dogecoin received strong support at $0.1650 and moved towards $0.18. The nearest significant resistance level for Dogecoin is located at $0.20. It should be noted that no notable levels were formed between $0.1650 and $0.20 so Dogecoin may easily move between these levels.

In case Dogecoin manages to settle back above $0.20, it will head towards the next resistance level which is located at $0.2150. A successful test of this level will open the way to the test of the next resistance at $0.2250.

On the support side, Dogecoin needs to get to the test of the major support level at $0.1650 to have a chance to develop downside momentum in the near term. RSI remains in the moderate territory so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Dogecoin settles below $0.1650, it will move towards the support at $0.1550. A successful test of this level will push Dogecoin towards the support at $0.1450.

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About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.