DOGE/USD is trading in a rather consolidated range the past couple of days, and to illustrate this point, traders should look at the five-day chart and understand that a tenth of a cent move appears large. Speculators can delight in the tight value band of DOGE/USD and wager, but as always, any position taken needs to have a defined amount of leverage implemented which does not threaten to kill a trading account.
After the huge amount of publicity DOGE/USD received early in February, trading volumes for Dogecoin have returned to rather average affairs. If DOGE/USD can manage to stay out of the limelight for a little while longer, this may allow traders to quietly go about their speculative business without the fear of a massive move. However, before a trader enters a position with DOGE/USD, they should acknowledge that the trading landscape can change at any moment.
DOGE/USD, after attaining five-day trading highs early yesterday, and then testing the five-cent support barrier, now finds itself straddling near the five- and one-tenth-cent level. DOGE/USD remains a speculative trade and this is not about to change suddenly.
Dogecoin derives its value based on existing sentiment in the broad cryptocurrency market and the ability of its DOGE/USD ‘backers’ to create excitement. It should be remembered that Dogecoin was created by its founders as a literal joke at the expense of the cryptocurrency world. Except the joke, in many ways, turned around on its creators and Dogecoin is taken seriously by its speculators.
As DOGE/USD hovers slightly above the five cents level, speculators may be tempted to sell the cryptocurrency and look for support levels below. It is advised that traders use limit orders with Dogecoin to protect against unexpected price fills. Having definitive take-profit and stop loss orders working is a solid trading recommendation too.
The consolidated trading range of DOGE/USD makes it attractive as a speculative cryptocurrency to test support and resistance levels which have been touched short term as price targets. Traders need to be alert and perhaps even patient when trading DOGE/COIN, but it is advised that speculators should not be looking for the massive moves seen in early February and should simply try to take advantage of the rather fractional changes in value.
Dogecoin Short-Term Outlook:
Current Resistance: 0.05360000
Current Support: 0.04930000
High Target: 0.05780000
Low Target: 0.04830000
