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Dogecoin Retreats As Crypto Markets Remain Weak
Dogecoin managed to get below the support at $0.20 and continued its downside move as crypto markets remained under pressure.
Bitcoin declined below the important support level at $32,000 after another Chinese province, Anhui, decided to ban crypto mining. The move is expected to ease the power shortage in the province. Anhui will eliminate all cryptomining projects.
The continuation of the crackdown on crypto mining in China has put pressure on most cryptocurrencies. Ethereum declined below the $1900 level while XRP slipped below the $0.60 level.
At this point, it is obvious that China will ultimately eliminate all crypto mining in the country, which is bearish for crypto markets. Crypto miners have been moving to other places once the crackdown began, but the number of areas with cheap electric power is limited, and crypto miners may continue to face pressure due to concerns about potential power shortage and environmental damage.
Technical Analysis
Dogecoin managed to settle below the support at $0.20 and continues to move lower. RSI remains in the moderate territory, and there is plenty or room to gain additional downside momentum in case the right catalysts emerge.
The next support level for Dogecoin is located at $0.1650. There are no important levels between $0.1650 and $0.20 so Dogecoin has a decent chance to gain additional momentum.
If Dogecoin manages to settle below $0.1650, it will head towards the next support at $0.1550. A successful test of this level will open the way to the test of the next support at $0.1445.
On the upside, the previous support level at $0.20 will serve as the first resistance level for Dogecoin. In case Dogecoin gets above $0.20, it will move towards the next resistance at $0.2150. A move above this level will push Dogecoin towards the resistance at $0.2250. If Dogecoin settles above $0.2250, it will head towards the 20 EMA which is located near $0.23.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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