DOGE/USD traders who may have turned their attention elsewhere the past two days can be forgiven for looking at a 5-day chart of the cryptocurrency and believing it is a three- or six-month technical perspective. DOGE/USD essentially was able to double in value in the past few days of trading, going from 35 to nearly 70 cents yesterday. Since then, DOGE/USD has backed away from its record height and is trading near 60 cents with fast market conditions prevailing.
So what do speculators do now after the fireworks? Even traders who are profound believers in Dogecoin may be skeptical regarding the potential for the wild bullish move to continue so easily. One thing is for certain: traders should use limit orders when entering the waters of DOGE/USD, so they do not drown from a tidal shift that can consume them. Moves of nearly 100% within a three-day span can make people rich, but they can also wipe accounts out.
Buyers of DOGE/USD are likely to remain optimistic and talkative short term. The 70 cents mark proved to be one step too far away yesterday, but if the cryptocurrency can display some semblance of technical stability the next day or so, this might continue to attract players who want to wager on long positions. The use of the words ‘player’ and ‘wager’ are not accidental, because speculators need to understand that moves which produce 100% changes in value are seldom safe terrains to proclaim a conservative trading approach. The amount of leverage used can prove a significant factor in DOGE/USD.
Traders who believe the 60 cents ratio is appealing as support may have technical ability to back up their beliefs, but DOGE/USD is moving fast and a glance away from the trading monitor may change perspectives quickly. Every person who wants to trade DOGE/USD should remain alert and make sure take-profit and stop-loss orders are working immediately after opening their positions. After making a high of nearly 70 cents yesterday, DOGE/USD did fall to nearly 50 cents in ten hours, and then climbed again.
Speculators may want to continue pursuing the bullish momentum of DOGE/USD, and they cannot be blamed. Realistic price targets should be used when dreaming about higher values and the ability to cash out winning positions should be dealt with carefully.
Dogecoin Short-Term Outlook:
Current Resistance: 0.65500000
Current Support: 0.59720000
High Target: 0.68600000
Low Target: 0.55730000
