Dogecoin has fallen below its support at $0.28, if the resistance was broken, it will move towards the $0.30 resistance level and a bullish trend would not be far-fetched.
As Bitcoin moved towards the support level of $32,000 and Dogecoin fell back, Dogecoin gained a strong downward momentum and tried to test the support level of $0.25, while other cryptocurrencies also found themselves under heavy pressure.
The fall of Bitcoin below the $35,000 support level and as it approached the next support level of $32,000.
If Bitcoin succeeds in closing below $32,000, it will gain additional negative momentum and move towards the important psychological level of $30,000, which will be bearish for Dogecoin and other cryptocurrencies.
At the same time, Ethereum fell to the $2,000 level, while XRP tried to settle below the support at $0.70.
Although some analysts pointed out that China’s continued crackdown on miners was the reason for the clearing of the cryptocurrency market, and it seems that most of the global markets have turned to safety due to the sudden change of the Fed’s tone, which has become the main catalyst for the current weakness.
Dogecoin managed to break below the support level of $0.28 and tried to test the next support level of $0.25.
RSI is still in a moderate zone, and if there is an appropriate catalyst, there is still enough room to gain additional bearish momentum.
A break below the support level of $0.25 for Dogecoin , will cause it to move towards the next support level of $0.2250. A successful test of the support level of $0.2250 will push Dogecoin to the next support level of $0.2150.
On the bright side, the previous support level of $0.28 will become the first resistance level for Dogecoin. If Dogecoin breaks this level again, it will move towards the $0.30 resistance level.
Above this level will indicate that Dogecoin will try to return to a bullish pattern. On the whole, Dogecoin appears to be weak and requires a material bullish catalyst to rebound from current levels.
