Dogecoin price has bounce off the support level of 0.2000 after concerns founded on the Evergrande debt crisis spilled over the cryptocurrency market. Subsequently, the global crypto market cap is back below the $2 trillion mark according to CoinMarketCap. Dogecoin, which is ranked 10th in the crypto market has had its value drop by 9.38%. However, its trading volume has surged by 143% over the past 24 hours.
DOGE has bounced off the support level of 0.2000 after ending the weekend’s losses earlier on Monday. After reaching a one-week high of 0.2604 on Friday, the altcoin has since declined by about 17.34%.
At the time of writing, Dogecoin price was down by 7.97% at 0.2141. Notably, Monday’s decline marked the crypto’s breakout from its two-week range-bound trading. After plunging from its prior support zone of 0.3000 earlier in the month, it has been trading within a horizontal channel of between 0.2317 and 0.2500.
On a two-hour chart, the altcoin is trading below the 25 and 50-day exponential moving averages. With an RSI of 28, it remains within the oversold territory. I expect Dogecoin to rebound further to 0.2275, which is along the 25-day EMA. Subsequently, it may return to the aforementioned horizontal channel.
On the flip side, it may find resistance at its current level of around 0.2205. If that happens, it will likely form a new horizontal channel with 0.2205 and 0.2000 as the upper and lower borders respectively.