After achieving new highs early this week, DOGE/USD may be creating a new support foundation which may entice additional speculation.
Dogecoin has seen its luster grow the past week of trading as it achieved record highs on Sunday and Monday after finding itself the beneficiary of abundant media coverage. Interestingly, after making highs early this week, DOGE/USD has been able to maintain a higher value band and has not absorbed a dramatic drop in value. However, what is perceived as a volatile drop or gain in value has a lot to do with the amount of speculative leverage a trader is using.
DOGE/USD remains actively traded and yesterday’s sudden spike higher from a hair below seven cents USD to above eight cents indicates the capability of its large moves. A move of over ten percent of value in a speculative asset within a moment’s notice should be acknowledged by speculators as an important potential parameter of trading. However, the move higher yesterday, which was followed by a reversal lower, actually did not knock DOGE/USD out of its value range.
DOGE/USD remains a speculators playground. The cryptocurrency remains under the spotlight because of its recent publicity, which involved Elon Musk talking about Dogecoin’s status as a bona fide cryptocurrency. Near term, if DOGE/USD is able to prove that support near seven cents is strong, speculators may believe another test of eight cents can develop.
Traders are advised to pay close attention to DOGE/USD and use necessary limit orders when they are capable. Dogecoin is no stranger to volatility and, technically, a look at a one-month chart shows an abundance of spikes. However, intriguingly for speculators who remain bullish regarding the ability of DOGE/USD, its current price is hovering over important highs made on the 29th of January. If Dogecoin can maintain its current value above the 0.07250000, it may become a signal for traders to pursue more bullish momentum. Conservative traders may want to see if Dogecoin can sustain its current higher value range for another day or so before becoming a buyer.
From a purely short-term technical perspective, support near the 0.06240000 level is also important. Traders must be prepared for volatility within DOGE/USD and not be fooled into thinking its trading waters will remain calm. Buying DOGE/USD on pullbacks which test support levels may prove speculatively worthwhile for traders who have the courage to participate in the cryptocurrency market.
Dogecoin Short-Term Outlook:
- Current Resistance: 0.07803000
- Current Support: 0.06900000
- High Target: 0.08200000
- Low Target: 0.06240000