DOGE/USD: Speculative Danger as Battle for Value Festers

DOGE/USD, as of this writing, is trading below the 30 cents level; in fact, it is trading closer to 28 cents. After becoming the darling of many within the cryptocurrency world, DOGE/USD has found out that being in the spotlight can also cause a lot of critical pushback. DOGE/USD traded near a high close to 45 cents on the 16^th of April and, on the 19^th, it moved slightly above 44 cents again. However, this doesn’t tell the entire story.

Social media influencers and backers of DOGE/USD proclaimed that the 20^th of April would create new highs for the cryptocurrency.  In some social media circles, a proclamation that the 69 cents mark would be attained was widely publicized. On the 20^th of April, a high in DOGE/USD did see some temporary trading above the 42 cents level, but this price level quickly fizzled, and by the end of the day, a value of 29 cents became a fixture.

As of this morning, DOGE/USD is trading below the low seen on the 20^th of April.  So what went wrong? How did the social influencers not achieve their target price of 69 cents? Let’s leave that to other ‘talking heads’ in the media, but simply put, proclaiming a target price that a financial asset would get the backing of a large cadre of speculators might have opened the door for bearish traders. An opportunity to sell DOGE/USD when it reached technical highs, and the wisdom that trading volumes were not strong enough to suggest momentum was on the side of bullish behavior did not help DOGE/USD.

The short term remains treacherous for speculators in DOGE/USD if they do not like the potential of volatility.  As the value of Dogecoin moves slight above the 28 cents mark, traders should take a careful look at the 27 cents level below, which may be considered important short-term support. If the 27 cents level fails to hold, traders should keep their eyes on the 24 cents level which has proven to be durable the past week.

DOGE/USD remains a favorite speculative endeavor by many within the cryptocurrency world and it will continue to get media coverage. The question is if traders believe another push higher is possible within the cryptocurrency and if its higher range will come into sight near term.

Limit orders are essential when trading DOGE/USD and traders should be ready for volatility. The temptation from a speculative viewpoint while looking at technical charts may be to sell DOGE/USD with a target near the 27 cents range. However, aggressive speculators who believe Dogecoin bulls will prevail might use support below as a place to look for buying opportunities with the belief that the 30 cents level will be hit again soon.

Dogecoin Short-Term Outlook:

Current Resistance: 0.30310000

Current Support: 0.27240000

High Target: 0.36300000

Low Target: 0.24370000