Dogecoin tests support at $ 0.2130 as Bitcoin pulls back

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Dogecoin is losing ground at the start of the week

Dogecoin is currently trying to stabilize below the support level at $ 0.2130 as Bitcoin pulls back after a major rally.

Bitcoin took a strong push to the upside after Fed Chairman Jerome Powell said he had no plans to ban cryptocurrencies. This statement had a major positive impact on the crypto markets, and traders ignored fears about China’s crypto crackdown.

The world’s leading cryptocurrency recently attempted to settle above the significant resistance level at $ 48,000, but failed to develop sufficient bullish momentum. If Bitcoin moves above this level, it will head towards the psychologically significant level of $ 50,000 which will be bullish for Dogecoin and other cryptocurrencies.

Meanwhile, other cryptocurrencies mostly fall with Bitcoin, although Ethereum remains strong and tries to establish itself above $ 3,400. It looks like traders want to take profits off the table after the recent rally.

Dogecoin has settled below the support at $ 0.2190 and is trying to move below the next support level at $ 0.2130. The RSI is in moderate territory, and there is plenty of room to gain further bearish momentum in case the right catalysts emerge.

If Dogecoin drops below $ 0.2130, it will head to the next support at $ 0.2050. A successful test of this level will pave the way for testing the support at $ 0.20. In the event that Dogecoin drops below $ 0.20, it will move to the next support level which is near the recent lows at $ 0.1940.

On the upside, Dogecoin needs to climb back above MOTHER 20 at $ 0.2215 for any chance of gaining ground in the short term. The next resistance level is located at $ 0.2255.

If Dogecoin manages to settle above the resistance at $ 0.2255, it will head to the next resistance at $ 0.23. A move above this level will push Dogecoin towards resistance at 50 EMA at $ 0.2390, although it may also face resistance at $ 0.2350.

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