DOGE/USD has no utilitarian necessity in the cryptocurrency world, except it acts as an excellent way to gauge sentiment among speculators and as a betting device. Trading volumes have dropped substantially in Dogecoin, and this is an important signal that a large amount of bettors who have been drawn to DOGE/USD in the past may not have the extra cash needed anymore to wager on its results.
DOGE/USD has been trading under the 10 cents mark since the 11th of May, and there are few signals which suggest Dogecoin is suddenly going to burst higher and climb above this mark in the short term. As of this writing DOGE/USD is trading slightly below the 8 and a half cent mark. Dogecoin is traversing prices that it has not sincerely traded since the first week of April in 2021.
If Dogecoin were to sink lower and move to the remarkable price of six cents it would then be trading values seen in March of 2021. Intriguingly, DOGE/USD has not hit values which were demonstrated before its exuberant rampage higher started in December of 2020 and January 2021, this when DOGE/USD was trading for essentially less than a cent.
On the 26th of May, DOGE/USD did hit the 7 and half cent mark before exhibiting a reversal higher which than managed to very briefly hit the 9 cents level on the 27th. Technically interesting is that during the flourish higher a few days ago, DOGE/USD witnessed a sincere amount of trading near the 8 and half cents mark which has become resistance.
Speculators who believe upside momentum can be attained should keep their goals realistic and perhaps not aim for massive moves higher. The use of take profit orders to cash out sudden winnings if they emerge is highly recommended. Fractional moves in DOGE/USD can produce massive results depending on the amount of leverage used, these results can be costly too if the market goes against the speculator’s chosen direction. Looking for values above 9 cents for the moment may be unrealistic.
The broad cryptocurrency market remains in a bearish long term trend, and betting against this downward momentum can prove dangerous. Speculators looking for headwinds to continue and who wager on further declines cannot be blamed. If the 8 and half cents mark for DOGE/USD cannot be toppled and sustained, there is reason to suspect the 8 cents level could become a target and possibly vulnerable near term.
Dogecoin Short-Term Outlook
Current Resistance: 0.08690000
Current Support: 0.08270000
High Target: 0.08880000
Low Target: 0.07860000
