DOGE/USD is trading near 12 and a quarter cents as of this writing and is in the middle of its one week price range. Curiously, DOGE/USD is also within the middle of its one month price range and this should raise the suspicions of traders who believe they can interpret behavioral sentiment within the broad cryptocurrency market and trade off of these perceptions.
While many of the major cryptocurrencies have enjoyed a rather solid past week and a half of trading and provided the ability to display signs of short term bullishness, DOGE/USD has consolidated. Proving that it is a solid barometer before of speculative fever in the broad cryptocurrency market, the notion that DOGE/USD has not been leading the pack in one direction is rather noticeable. It can be argued that DOGE/USD is no longer the darling of the speculative cryptocurrency crowd.
But what if the consolidation in DOGE/USD is actually a sign that skeptics remain rather conservative regarding short term direction in the digital asset sphere? What if DOGE/USD is now merely following in the footsteps of the larger cryptocurrency world, and traders are waiting to buy Dogecoin only if higher prices can be sustained in the other major cryptos like Bitcoin, Ethereum and more?
This could leave the door open to buying opportunities for speculative bulls who feel that the recent tight price range of DOGE/USD will actually begin to display volatility again. One thing is certain, DOGE/USD will not continue to merely trade within this current 12 cents price band. If DOGE/USD were to break below the 0.11850000 mark, this could be a sign that the 0.11650000 ratio could be tested promptly. Remember a change of one cent in DOGE/USD almost equates into a 10% change of value depending on its price ratios, so solid risk taking tactics are always needed.
If the broad cryptocurrency market remains positive and doesn’t suffer violent reversals lower, buying DOGE/USD may prove to be a worthwhile buying wager. If nearby resistance levels begin to see a challenge and the 0.12450000 level is proven vulnerable, a run higher could develop which could penetrate short term resistance and perhaps even see the consolidated range of DOGE/USD broken upwards.
Dogecoin Short-Term Outlook
Current Resistance: 0.12410000
Current Support: 0.12030000
High Target: 0.12880000
Low Target: 0.11650000
