DOGE/USD: Important Support Being Tested Once Again

Robert Petrucci

DOGE/USD is hovering over important lower support junctures and speculators should be prepared for bursts of volatility.

DOGE/USD is within sight of the 20 cents level as it has broken lower once again. The 20 cents juncture serves as a key psychological level regarding negative sentiment. On the 8th of July, DOGE/USD broke below the twenty cents ratio as it briefly tested values around 19-and-a-half cents. Prior to that, the 21st thru the 22nd of June witnessed lows of 16-and-a-half cents being tested. Speculators who are counting on sudden spikes higher propelled by buying momentum being generated because of the cheaper values should be careful about these considerations.

The broad cryptocurrency market continues to look rather fragile and across the trading landscape technical support levels are clearly being tested. Traders who continue to believe bearish sentiment because of the mid-term trend is the correct price action to pursue cannot be faulted. As DOGE/USD trades near its current lows, the 20 cents support ratio is vital and if broken and sustained could open negative floodgates.

Trading volumes in the broad cryptocurrency market are not strong, and traders need to be wary of sudden volatility being generated by large orders. The question is if DOGE/USD can find enough buyers to create a surge in upwards momentum to fight off of the current lows. While Dogecoin has proven it certainly has the ability to reverse higher, what should intrigue bearish traders is that resistance levels continue to incrementally lower.

The high water mark for DOGE/USD in July has been around 25 cents, and this was seen on the 1st of the month. Since then, DOGE/USD has seen progressive erosion in value. The worrying implication regarding this downward trajectory is the realization the bearish tendencies have not been accomplished with violence. The lack of velocity may indicate that traders have not hit their panic buttons yet, meaning the remaining bullish speculators who are still holding on to DOGE/USD may be counting on a move upwards to be demonstrated. What happens if they are proven wrong?

If DOGE/USD breaks below the 20 cents levels and sees sustained price action below this important juncture it is likely a negative signal and may indicate further bearish selling will ensue. Almost unbelievably current resistance for DOGE/USD rests under the 21 cents level, which highlights the manner in which Dogecoin has seen resistance levels decrease as selling momentum builds. Bearish traders should remain alert because if the 20 cents mark proves vulnerable, DOGE/USD may seek to test recent lows and appears to have the capability to decline further.

Dogecoin Short-Term Outlook:

Current Resistance: 0.20710000

Current Support: 0.19650000

High Target: 0.22400000

Low Target: 0.18050000

DOGE/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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