DOGE/USD is showing signs that speculative interest in the cryptocurrency is driving price as it correlates with the broad market, but also exhibits its own individual trading characteristics. Dogecoin is trading above the 13 cents juncture in what appears to be an almost comfortable manner. However, this is a cryptocurrency we are talking about, in fact one of the most speculative cryptos known, so the word comfortable is based on momentary perceptions.
While DOGE/USD has produce highs recently which came within sight of 14 cents on the 1st and 2nd of March, Dogecoin has certainly not touched 14 cents. The reversals lower in value after the strong buying momentum was displayed could be enough to continue to scare away conservative speculators, who want to see the 14 cents ratio penetrated higher before they decide to dive into what could be perceived as a positive trend.
Intriguingly the reversals lower in DOGE/USD have actually begun to show a technical support ‘floor’ and the 13 cents level has been rather durable since the 28th of February. Traders certainly need to use stop losses and protect against the always present danger of sudden spikes lower, which can puncture support and sink DOGE/USD to new depths. However, the ability of Dogecoin to sustain the 13 cents juncture may prove attractive for buying wagers.
The broad cryptocurrency market has seen major digital assets gain this week. The moves toward short term highs have seen reversals lower, but nervous sentiment is beginning to show signs of increased speculative buying. Skeptics may still consider many of major cryptocurrencies within a long term bearish trend, but speculators who are optimistic regarding the potential of a turnaround appearing upwards, may be looking at current price action including DOGE/USD, and believe signals are starting to show signs of life for potential higher moves.
Cautious buyers may want to wait for DOGE/USD to have lower values displayed and support levels to be traversed before igniting their long positions. If DOGE/USD is able to maintain its value above 0.13200000 in the short term it may be an indication there is further room to climb. Traders should use entry price orders to make sure their ‘fills’ meet expectations and they should remember to not be overly ambitious as they seek potential gains. DOGE/USD may test highs seen the past two days again in the near term.
Dogecoin Short-Term Outlook
Current Resistance: 0.13440000
Current Support: 0.13060000
High Target: 0.13900000
Low Target: 0.12660000
