In late night trading, DOGE/USD flirted with the 25 cents juncture for the first time since the mid-September and speculators face a decision.
DOGE/USD nearly hit the 25 cents level in late night trading and, as of this writing, is traversing below the 24 cents level with rather fast conditions still threatening to swirl. The broad cryptocurrency market experienced a springboard higher yesterday, and a bullish trend has been established since the start of October. However, the reversals upwards for the digital assets have occurred after important support levels were being tested technically, including for DOGE/USD.
The question speculators now face is whether the recent turnaround in Dogecoin is legitimate and will gather more bullish momentum, or if they are about to be sucked into a void where they attempt to buy and find DOGE/USD suddenly reverses lower. The 25 cents barrier certainly proved to be a vital psychological juncture last night. When DOGE/USD was not able to penetrate this mark, the price began to erode. Speculators should watch the 23-and-a-half cents level as curious support. If this value can be sustained short term, it might encourage more buying on the belief DOGE/USD is going to consolidate and attempt a run higher.
However, if the 23-and-a-half cents ratio proves vulnerable, the selling produced near the 25 cents juncture late last night may prove to be more than mere profit taking. A move downwards below the 23 cents price might indicate that the recent buying was overdone and that the bearish cycle which has been a dominant feature of DOGE/USD for nearly a month is about to renew. With short-term resistance neatly being displayed near the 24 cents level, this allows speculators to wager on quick-hitting momentum. If the 24-and-a-half cents value is challenged again today, cautious buyers may be encouraged to pursue their visions for additional targets upward.
The broad cryptocurrency market appears ready to produce significant volatility short term, which mirrors other financial assets. Speculators certainly need to use their risk management wisely and protect their trading positions against spikes that could go in the wrong direction. If DOGE/USD traverses above 24 cents it may be a good buying opportunity for a fast trade that uses a solid price target above for quick results. If DOGE/USD moves below 23 cents, selling the cryptocurrency and aiming for the 22-and-a-half cents mark could prove to be worthwhile too. Conservative amounts of leverage are urged for traders today.
Dogecoin Short-Term Outlook
Current Resistance: 0.24260000
Current Support: 0.23400000
High Target: 0.250000000
Low Target: 0.22400000