Elon Musk has recently provided material support to Bitcoin and other cryptocurrencies as he stated that Tesla could again begin to accept Bitcoin as payment for the company’s cars.
According to Musk, Bitcoin is moving towards renewable energy, but Tesla will make sure that its environmental goals are met before Bitcoin could be used to buy Tesla cars.
Musk has also noted that he personally owned Bitcoin, Dogecoin and Ethereum. Not surprisingly, Musk’s comment provided additional support to Dogecoin, which made an attempt to settle above $0.21 but lost momentum and pulled back towards $0.19.
Dogecoin has recently made an attempt to settle above $0.21 but failed to develop sufficient upside momentum and pulled back. Currently, Dogecoin is trying to settle above $0.19.
I’d note that no material levels have been formed between the support level at $0.1650 and the resistance level at $0.20 so Dogecoin may easily move between these levels when it stays in the current $0.1650 – $0.20 range.
A move above the resistance at $0.20 will signal that Dogecoin will try to develop additional upside momentum. Dogecoin will have to settle above the 20 EMA at $0.2045 to have a chance to get to the test of the resistance at $0.2150.
If Dogecoin manages to get above the resistance at $0.2150, it will move towards the next resistance level at $0.2250. A successful test of this level will open the way to the test of the resistance at $0.23.
On the support side, the nearest support level for Dogecoin is still located at $0.1650. Additional support levels below $0.19 may be formed in the near future if Dogecoin does not develop significant downside momentum which could take it below $0.1650. If Dogecoin declines below $0.1650, it will head towards the next support level at $0.1550. A move below this level will open the way to the test of the support at $0.1450.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire