After falling to a low of nearly 15 cents on the 23rd of April during a flash crash, DOGE/USD has been able to find its footing. In fact, Dogecoin was able to reverse higher on the 23rd of April and then began to establish a rather steady technical range the past week between price,s largely between 23 and 27 cents, with occasional outliers. However, in early trading yesterday, DOGE/USD experienced a swift rally and climbed from approximately 26 to 34 cents in a fast manner.
Interestingly, DOGE/USD has been able to hold its higher values late yesterday and today; as of this writing, the cryptocurrency is near 31-and-a-half cents. Traders need to remember that on the 13th of April, DOGE/USD was trading near 7-and-a-half cents. Dogecoin has been a speculator's delight in April as it has enjoyed a swift rise in value and plenty of attention in the media fed by the occasional sound bite from influencers. The ability of DOGE/USD to maintain its upper value range, even as some reversals have certainly occurred, demonstrates that Dogecoin has a loyal group of speculators.
The larger cryptocurrency market has produced some choppiness the past few days, but has been able to maintain higher price levels. After suffering a rather predictable fall in value when the hyperbole of social media didn’t achieve its price targets for DOGE/USD in the middle of the month, the digital currency has been able to actually create an almost comfortable trading landscape the past five days. Technical traders now have the ability to use current support levels as stop loss marks.
Buying DOGE/USD at current price levels is certainly speculative, but cautious traders can use slight pullbacks to activate their long positions. If the current bullish momentum maintains its pace within DOGE/USD, it is possible that targets such as 33 and 34 cents could be challenged again. Traders need to understand the abrupt volatility Dogecoin can produce if a large amount of leverage is used due its cheap values, which allows speculators to experience large percentage moves.
DOGE/USD is a favorite among many cryptocurrency traders because of its potential for volatility, however. The recent ability of Dogecoin to hold its value and maintain some semblance of a stable range within its loftier values achieved since the middle of April make it a buying wager potentially worth pursuing if proper risk management is used.
Dogecoin Short-Term Outlook:
Current Resistance: 0.32880000
Current Support: 0.30260000
High Target: 0.35060000
Low Target: 0.28070000
