DOGE/USD has begun the day with a move higher that has produced a gap on technical charts highlighting the cryptocurrency remains volatile.
DOGE/USD is trading above the 23 cents juncture in early trading today, after a gap higher has been created by buying momentum. DOGE/USD also traded near support around the 18 cents mark yesterday. DOGE/USD, while being able to produce nearly a 6% jump in value the past twelve hours, is still substantially down compared to its price around 31-and-a-half cents on the 18th of June.
Volatility is a constant ingredient in Dogecoin, and speculators need to understand its trading landscape before they venture forth with wagers on DOGE/USD. The broad cryptocurrency market was able to demonstrate slight gains yesterday among many of the digital currencies, but by late in the night began to see reversals lower. Intriguingly, DOGE/USD did not correlate technically to the broad market.
The gains in DOGE/USD can be viewed in a couple of ways. The move higher may have been a combination of large buyers stepping in to try and bolster their positions when they deemed DOGE/USD was rather cheap. It could also be a coordinated buying action from organized traders within social media groups who believe Dogecoin has intrinsic value regarding its speculative ability. However, none of these reasons diminish the notion that DOGE/USD remains locked within its bearish price range still.
If DOGE/USD is able to challenge the 24 cents mark today and sustain its price near or above this juncture, it could stir the hearts of speculative bulls. The problem for DOGE/USD, though, is the notion that the 23 cents level is still relatively close, and that if a forceful amount of selling is demonstrated near term, support levels which have proven vulnerable the past week could be retested quickly again. While DOGE/USD was able to certainly exhibit the ability to move higher late last night, the question now is if values can be sustained.
Speculators may look at the gains from late last light as rather polite, but not a consistent and overwhelming signal to suddenly become buyers. The trend within DOGE/USD remains in a bearish mid-term cycle and, until resistance levels of 24 and 25 cents prove vulnerable, selling Dogecoin may remain the most attractive endeavor. Aggressive speculators may view the recent gains as a way to step in with short positions while using limit orders slightly above current market prices. DOGE/USD makes one promise to all speculators, it will deliver volatility – so risk management is always necessary.
Dogecoin Short-Term Outlook:
Current Resistance: 0.23900000
Current Support: 0.22850000
High Target: 0.24300000
Low Target: 0.20400000