DOGE/USD has roared to new highs helped by speculative fuel after Elon Musk’s comments put the cryptocurrency in the spotlight.
DOGE/USD is a top ten-ranked cryptocurrency according to market volume trading values. Dogecoin was started as a joke by software developers who were mocking the newly born digital currency world during its infancy. However, DOGE/USD has always attracted a solid speculative field of traders who have wagered on its value. In the past couple of days, Elon Musk promoted Dogecoin in a rather serious manner, which helped put the cryptocurrency in the spotlight.
Although Musk certainly pointed out that Dogecoin is a speculative endeavor and admitted the cryptocurrency was started as a joke, he pointed out that it is ironic and perhaps a form of justice that Dogecoin is being taken seriously as an alternative digital currency. DOGE/USD jumped in value with force yesterday and has maintained value near its highs. As Musk said in his commentary, this is not an asset that someone should put their life’s savings into; Dogecoin is speculative.
Interestingly, DOGE/USD did achieve highs in the end of January too. Its bigger counterparts like Bitcoin and Ethereum have produced massive gains in the past month. But taking into consideration the minimal value of DOGE/USD, the cryptocurrency has seen a gigantic rise in value too since the beginning of the year. The rise in value was sustained until about the 28th of January, when an accelerated rise in value took place for DOGE/USD.
The cryptocurrency essentially went from a value of less than one cent to more than seven cents on the 29th of January. However, on the 30th of January, DOGE/USD saw its value dive again and become worth less than two-and-a-half cents USD. This highlights that the cryptocurrency is a highly speculative endeavor which traders are wagering on and seeing vast moves. As to why the moves are happening, traders may believe it is because of technical factors, but they also must acknowledge the power of ‘influencers’ who may be encouraging speculation within DOGE/USD.
After moving to new highs yesterday which came within sight of nine cents USD, DOGE/USD has reversed slightly lower, but it has maintained its higher value range short term. Speculators are cautioned to be conservative when trading DOGE/USD, but it is not unreasonable for traders to potentially think that the nine cent value for DOGE/USD may be a target. However, after showing a potential for swift downside action last week after making big gains, speculators also might want to consider selling DOGE/USD and looking for support to be tested below again.
Dogecoin Short-Term Outlook:
- Current Resistance: 0.08230000
- Current Support: 0.07065000
- High Target: 0.09000000
- Low Target: 0.05600000