DOGE/USD went from a low below the 16 cents mark yesterday to a high of approximately 22 cents within a quick span. The reason this happened was because Elon Musk made a statement suggesting that Tesla merchandising products could be sold using Dogecoin sometime in the future. However, after making this rather impressive move higher, DOGE/USD began to sell off again and as of this writing finds itself near 18 cents.
Perhaps Elon Musk wanted to deliver an early Christmas present to Dogecoin speculators, who have had to watch the cryptocurrency sleeping near support levels the past week while puncturing them lower on occasion. Prior to yesterday’s social media frenzy, DOGE/USD was touching lows slightly above 15 cents early on Tuesday. Since the 28th of October, DOGE/USD has demonstrated a rather steady bearish trend after hitting a high of 34 cents.
Speculators who want to pursue DOGE/USD today should remain vigilant for other social media influencers who would like nothing more than to see Dogecoin be sparked higher if they are holding the cryptocurrency. While Elon Musk may have been quite serious about his comment, it appears a dose of realistic wagering on DOGE/USD prevailed yesterday which likely questioned how Tesla would accept payments via Dogecoin for some of its products.
DOGE/USD actually remains within a rather durable bearish cycle and yesterday’s price action may prove to be rather interesting for speculators who remain sellers. As DOGE/USD trades within sight of the 18 cents mark early this morning, there is reason to suspect that if a move higher cannot be sustained additional selling force may be generated. While Musk may find his way to the microphone again near term and talk about Dogecoin, experienced traders may view this as a maneuver to simply cause a flurry of activity.
Technical traders may be tempted to sell DOGE/USD on slight moves higher today and continue to seek support levels as take profit targets. Yesterday’s price action certainly supplied Dogecoin with a moment of speculative attention, but it may prove to be short lived, particularly if Elon Musk turns his attention to any of the other projects he is working on in his busy life. Selling DOGE/USD should be done using strict risk taking tactics only, including stop loss orders in case there is another sudden surge propelled by ego-driven billionaires.
Dogecoin Short-Term Outlook
Current Resistance: 0.18490000
Current Support: 0.17350000
High Target: 0.201500000
Low Target: 0.15400000
