DOGE/USD provides a strong attraction to short-term speculators who are frequently enticed by its dramatic volatility, and today may provide another chance.
DOGE/USD moved towards a high of nearly 23-and-a-half cents two days ago, but since reaching this short-term summit, the cryptocurrency has reversed lower and, as of this writing, is around the 20-and-a-half cents ratio. A low of slightly below the 19-and-a-half cents mark was seen early yesterday, but since then DOGE/USD has provided a reversal higher followed by another slight pullback.
Volatility is a key ingredient of Dogecoin and its allure as a speculative asset is known throughout the cryptocurrency world. Started as an ‘inside joke’ via its founders, DOGE/USD has enjoyed a rollercoaster like ride providing thrills and spills for its traders. Technically, DOGE/USD has pulled strongly above its lows from the 20th of July when the cryptocurrency was trading below 16 cents.
What may be causing pain within the speculative souls of traders this morning is that DOGE/USD has not joined the ‘party-like' atmosphere which seems to be occurring with Bitcoin momentarily. While DOGE/USD has been able to show it can climb and made highs two days ago which had not been seen since the first week of July, the reversal lower and inability to sustain better values is noticeable.
However speculators may actually be enticed more by these technical ingredients and be wondering if DOGE/USD will begin to incrementally rise. The recent short-term ability of Bitcoin to rise in value and come off of troubling lows may create a swirl of positive sentiment. If DOGE/USD can feed from a sustained run higher via other cryptocurrencies certainly that would be a boost. However, the question has not been answered yet, and traders may be skeptical and afraid sudden reversals lower with Bitcoin could have a negative effect on Dogecoin.
Technically, traders should ask where the greatest risk reward opportunities exist in the short term. The notion that DOGE/USD has come off early highs and is near short-term resistance could prove attractive for traders who seek buying positions and believe upwards momentum may be embraced. If DOGE/USD sustains its current values near the 20-and-a-half cents ratio or drops a little lower but doesn’t seriously test 20 cents below, now may prove the time to try and catch a wave higher in the cryptocurrency. It is a speculative wager and risk management must be used, but buying DOGE/USD may prove to a worthwhile task short term.
Dogecoin Short-Term Outlook:
Current Resistance: 0.20750000
Current Support: 0.20250000
High Target: 0.21750000
Low Target: 0.19750000