Dogecoin Sets New Records As Rally Continues
Dogecoin Video 05.05.21.
Dogecoin Tries To Settle Above $0.70
Dogecoin continued to rally and made an attempt to get to the test of the $0.70 level as traders bet that adoption of this cryptocurrency will continue to grow.
On May 3, eToro stated that it would add Dogecoin to cryptocurrencies that were traded on its exchange. EToro stated that the decision was made to due client demand.
On May 4, Bitfinex made Dogecoin pairs (DOGE/USD and DOGE/USDt) available for margin trading, which allows traders to borrow funds in order to increase their leverage and potential profits.
These moves provided significant support to Dogecoin as traders bet that increased adoption of the cryptocurrency will further boost its market cap. At this point, Dogecoin ranks fourth by market capitalization behind Bitcoin, Ethereum and Binance Coin.
Technical Analysis
Dogecoin managed to settle above previous highs at $0.60 and made an attempt to get to the test of the $0.70 level. RSI has moved into the extremely overbought territory so the risks of a pullback are increasing.
At the same time, it should be noted that RSI remains far below extreme levels that were reached back in mid-April so Dogecoin maintains solid chances to gain additional upside momentum.
The recent upside move was very fast so there are big gaps between levels. The nearest support level for Dogecoin is located at the previous highs at $0.60. In case Dogecoin settles below this level, it will move towards the next support at $0.5350. A successful test of this support level will open the way to the test of the major support level at $0.45.
On the upside, Dogecoin needs to settle above $0.70 to continue its upside move. A move above this level will likely attract more speculative traders which will be bullish for Dogecoin. I’d note that traders should keep in mind that Dogecoin is set to be very volatile in the upcoming trading sessions.
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This article was originally posted on FX Empire
