DOGE/USD has taken another hit lower the past few days of trading, as the cryptocurrency has been pounded by headwinds and found it difficult to penetrate higher resistance. Dogecoin is now trading below 12 cents per token and it is demonstrating an incremental lowering of support. A low below 11 cents was made on the 24th of February. While DOGE/USD was able to traverse upwards after this depth being hit, the high achieved on the 1st of March didn’t pass the 14 cents juncture.
Speculators who continue to pursue DOGE/USD are making bets most likely on the potential of large percentage changes in value. A move of 2 cents can create a massive change of value within a trading account. The results can be good if the correct direction has been wagered on, and the results can be a disaster if the wrong bet was made. It is essential that a conservative amount of leverage is being used to safeguard against the possibility of a perceived small move in DOGE/USD causing bedlam.
DOGE/USD is correlating with the major cryptocurrency market almost in lockstep. Technically, its lows being tested currently, however, are approaching value not seen since the middle of April last year. Unfortunately for Dogecoin the prices being displayed now compared to last year’s ratios are being delivered as the cryptocurrency continues to suffer from a huge bearish trend.
If a trader bought DOGE/USD during the height of over exuberance last year and is still holding onto the cryptocurrency, they might continue to muster the willpower to see what happens and remain stubborn. However, day traders who are merely speculating on short term changes in value for DOGE/USD simply want to take advantage of potential direction. DOGE/USD may be near incredibly important support, but it can actually still trade to new lows.
Traders should use stop loss orders and entry price positions to engage in DOGE/USD. Speculators who believe the broad cryptocurrency market will remain nervous in the near term may want to wager on more downside price action. It is recommended that take profit orders are used to cash out winning positions. Volatility in DOGE/USD remains present and traders should have their price targets locked into their trading accounts, this to cash out of a trade when it goes in the proper direction before a sudden reversal is displayed.
Dogecoin Short-Term Outlook
Current Resistance: 0.12060000
Current Support: 0.11560000
High Target: 0.12290000
Low Target: 0.10500000
