DOGE/USD which has been a favorite of the cryptocurrency speculative world the past year has stumbled to vital short term lows as of this morning. The broad cryptocurrency market is seeing a sea of red flash across trading platforms. A rather incremental and perhaps even polite lower trend has been seen the past handful of days among many of the major cryptocurrencies. However, things have taken a turn for the worse in early trading today and among them Dogecoin has suffered.
DOGE/USD is near 0.12750000 cents as of this writing and its moves are capable of creating large percentage swings in value because of the combination of volatility being displayed, and the rather cheap nature of Dogecoin. DOGE/USD is testing the lowest realms of its values and is hovering slightly over values seen on the 22nd of January when it traded slightly below 12 cents momentarily. The ability of DOGE/USD to once again flirt with these low values is certainly causing problems for some speculators who perhaps bought DOGE/USD with a long term hold outlook and are likely growing nervous.
The current price levels of DOGE/USD are technically below depths seen in March of last year when the speculative asset began to catch fire upwards. However, the current bearish trend of DOGE/USD doesn’t show much capability to suddenly ignite upwards. In fact, if Dogecoin were to sink below its lows seen exactly one month ago, this might trigger more panic selling among its speculative backers.
Yes, on the 7th of February, DOGE/USD was trading near 17 cents as it achieved a rather strong reversal higher after January’s large selloff. However, that high feels like miles away, even though DOGE/USD is now only trading 5 cents below that juncture seen only two weeks ago. The downward trend within DOGE/USD has been demonstrated and if the speculative asset begins to test the 12 cents ratio, speculators can logically think about 11 and half cents, and even lower values for Dogecoin.
Volatility has always been part of DOGE/USD and its trading environment now offers the capability to see large changes in value within a short amount of time. However, this could prove extremely costly for a trader caught on the wrong side of a trade and who is using far too much leverage. Risk taking tactics need to be carefully considered today by all speculators. Nervous sentiment is generating fast moves and choppy conditions may continue near term. Selling DOGE/USD with solid take profit targets and strong stop loss orders could prove an interesting wager to ignite, after slight reversals higher are demonstrated.
Dogecoin Short-Term Outlook
Current Resistance: 0.13250000
Current Support: 0.11950000
High Target: 0.14880000
Low Target: 0.09950000
