Short-Term Rebound in Danger of Becoming Memory

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DOGE/USD is trading above 6 cents in early trading this morning.  This value is far better than the ratio demonstrated this past weekend, when Dogecoin moved slightly below the 5 cents level during the massive selloff which hit the entire cryptocurrency market. Yesterday’s trading produced a late short-term high for DOGE/USD when it was able to briefly flirt with the 7 cents mark. Since hitting this juncture, DOGE/USD has traversed lower with its movement essentially mirroring the results of other cryptocurrencies.

While speculative bulls certainly welcomed the reversal higher demonstrated the past couple of days in DOGE/USD, skeptical sellers have likely been wondering if and when the bearish trend will reignite.  DOGE/USD remains locked within a steep downward cycle which has not been able to generate much upside movement for sustained durations, except for the occasional bursts higher allowing some traders to try and take advantage of perceived support levels and bet on temporary pushes upward.

Traders need to remain alert when they wager on DOGE/USD. Considering the notion that DOGE/USD was trading near the 5 cents level on Saturday and it came within sight of the 7 cents juncture yesterday, risk management considerations need to be made accordingly. Moves of twenty percent in one day are not for the weak of heart. Stop loss and take profit orders are urged for speculators who want to wager on Dogecoin.

The move higher the past two days raises the potential for a return to the bearish momentum which has been demonstrated for a long time.  The broad cryptocurrency market has not been able to hold onto its gains the past twelve hours and an erosion of values. Important short term support levels are in clear sight, if DOGE/USD were to suddenly challenge the 6 cents levels it would not be a shock. Traders do have to accept the fact that positions in DOGE/USD are a pure wager.

DOGE/USD has produced a polite rally higher in the past two days of trading, but its recent downturn may raise the suspicion that selling pressure is again about to be displayed within the cryptocurrency. Traders willing to bet on a lower move may be making the logical choice, but they need to use careful risk taking tactics. Entering positions with DOGE/USD should be done with entry price orders and speculators need to be cautious.

Dogecoin Short-Term Outlook

Current Resistance: 0.06669000

Current Support: 0.06060000

High Target: 0.07100000

Low Target: 0.05337000

DOGE/USD

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