DOGE/USD traded from approximately the 44-cent mark yesterday down all the way to around 21-and-a-half cents as volatile conditions flourished. DOGE/USD, like all the major cryptocurrencies, is experiencing swift market conditions as traders have been given a vital reminder that these are speculative assets. In early trading today, DOGE/USD is hovering near the 37 cents level and is within a technical short-term range which may prove instrumental as an indicator regarding sentiment.
Even as fast trading persists for DOGE/USD, a range between 32 and 38 cents may prove to be significant today. If the 38 cents value is penetrated higher, it could create a window for speculators to aim for the 40 cents level and slightly higher. However, if the 32 cents mark below starts to be flirted with, traders may believe that further negative momentum is going to be unleashed within DOGE/USD.
If traders are contemplating downside action, they might want to take a look at the 30 cents level as vital support for DOGE/USD. Yes, as dynamic selling occurred yesterday, Dogecoin dipped to lows of nearly 21-and-a-half cents, but this was followed by a rather strong reversal higher which has achieved its current market value. Traders should understand that if price pressure continues to be exerted within DOGE/USD, the thirty cents level could be viewed as key psychological support, because it was last really traded below this mark with a large amount of transactions in late April and early May.
From a risk/reward standpoint, traders need to gauge where they feel the most dynamic trading will be produced. DOGE/USD has certainly produced a bearish trend the past couple of weeks. On the 8th of May, Dogecoin was trading near the 74 cents juncture, and as of this writing it has lost slightly more than half its value. This should highlight to every trader that solid risk management is needed when trading DOGE/USD.
Taking into consideration the bearish trend which has been exhibited in many of the cryptocurrencies short term, selling DOGE/USD and targeting support levels appears to be the correct tactical decision. If DOGE/USD is not able to puncture nearby resistance levels and continues to merely gyrate within its current price range, it may mean that a speculative opportunity exists to wager on more downside price movement.
Dogecoin Short-Term Outlook:
Current Resistance: 0.38300000
Current Support: 0.32400000
High Target: 0.43900000
Low Target: 0.25800000
