DOGE/USD is proving a tough battleground for speculators who are trying to pursue short-term bullish behavioral sentiment.
DOGE/USD has produced rather stiff resistance the past five days of trading, and is likely challenging speculators who are trying to pursue bullish behavioral sentiment which has been demonstrated within the cryptocurrency sector. DOGE/USD is traversing near the six cents ratio, which has proven to be a tough battleground since the 15th of February.
The past week of trading within DOGE/USD has seen a large amount of its trading take place between five and six cents. Speculators new to the asset are cautioned to make sure they understand the values of DOGE/USD and maintain appropriate amounts of leverage. While the price of DOGE/USD has the look of limited values because of it ratio within cents, there is no escaping the fact that moves of one cent within an asset which is only six cents in total is equivalent to fluctuations of over 16%, meaning speculators need to be ready with their risk management.
Taking into consideration that DOGE/USD was trading at less than a value of one cent in late January of this year is also a reason Dogecoin is attractive as a speculative asset. However, traders willing to wager on DOGE/USD must understand that within the world of speculation, most things that can gain amounts of money quickly can also demonstrate the ability to decline rapidly.
Resistance for DOGE/USD near the six cents ratio should be watched carefully. Although the broad cryptocurrency market, including Dogecoin, has been within the grasp of a spectacular bullish run higher, skeptics may believe that technically, questions are arising about direction.
The prevalence of trading within the five to six cents range the past week may be setting off alarm bells within skeptics of DOGE/USD who believe the speculative momentum higher may be running out of steam. It may seem farfetched to say Dogecoin needs another influencer to help publicize the cryptocurrency like Elon Musk did over two weeks ago, but there is no denying that the flurry of publicity caused by the Musk video helped the value temporarily of DOGE/USE.
Cautious traders may want to consider buying orders of DOGE/USD if support slightly below five-and-a-half cents is touched. There is also a potential for speculators to sell DOGE/USD when the cryptocurrency nears or climbs above the six cents level based on the believe speculative powers may not be able to sustain its value short term.
Dogecoin Short-Term Outlook:
Current Resistance: 0.06080000
Current Support: 0.05420000
High Target: 0.06628000
Low Target: 0.04448000