DOGE/USD: Nervous Sentiment, Crucial Support Testing Traders

Robert Petrucci

DOGE/USD touched the 20 cents support juncture twice yesterday, but the cryptocurrency managed to hold and produce slight reversals higher.

DOGE/USD is traversing slightly above 21 cents as of this morning, but has seen another wave of nervous sentiment create an incremental bearish trend. Twice during trading yesterday the 20 cents juncture was tested, but the cryptocurrency pushed higher on both challenges, although DOGE/USD certainly continues to hover very close to this important support level.

On the 17th of September DOGE/USD was trading near the 26 cents level and on the 6th of September the cryptocurrency was trading near 32 cents. Unfortunately for bullish speculators this trend downwards has been fairly steady and for the time being it appears that another wave of weak behavioral sentiment is shadowing the cryptocurrency market. DOGE/USD has correlated rather well to its major counterparts and has not been able to muster a legitimate sustained move upwards the past few days.

DOGE/USD is now within the price range of values it traded the first week in August. The 20 cents barrier could prove important psychologically and if it is not able to be sustained, speculators should expect a sudden wave of volatility to ensue rapidly which could see the 19 and half cents level become magnified. DOGE/USD has the potential to deliver quick hitting changes in value, but it must be said that it has not been able to find the strong support of influencers it enjoyed this past spring. Dogecoin has actually been a rather ‘quiet’ cryptocurrency the past few months.

Yesterday’s test of the 20 cents mark and the reversals higher are of interest technically. If another challenge of DOGE/USD erupts to the downside, the third ‘attempt’ of breaking the 20 cents level could prove to be the charm and open a rather ugly gate which allows downside momentum to grow. On the 21st of July it should be remembered that DOGE/USD was trading near 16 cents.

DOGE/USD still has a legion of influencers and speculative admirers who enjoyed the rather glorious heights which the cryptocurrency enjoyed only a handful of months ago. However, DOGE/USD remains vulnerable technically and while it can certainly produce higher moves, it also has the ability to see its bearish trend extend lower.

A move of five cents remains a possibility within DOGE/USD if volatility suddenly flashes, and a bounce higher is not out of the question. But selling DOGE/USD on slight reversals higher in the short term appears to be the logical wager for traders who want to aim for current support levels as a take profit target.

Dogecoin Short Term Outlook:

Current Resistance: 0.22550000

Current Support: 0.19950000

High Target: 0.24800000

Low Target: 0.16900000

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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