DOGE/USD is trading below 6 cents as of this writing, and its decline in value continues to display a nearly one way direction.

As of this writing, DOGE/USD is trading below 6 cents. The long-term bearish trend in Dogecoin has brought it to within prices not seen since late March of last year. This fact technically can actually be interpreted as a negative indication, because in January of 2021 DOGE/USD was trading below 5 cents. And in December of 2020 traders may want to remember that DOGE/USD was moving incrementally below one cent.

Speculative zeal for DOGE/USD has disappeared.  The broad cryptocurrency market is obviously struggling and Dogecoin is acting like a disobedient dog barking in the house. DOGE/USD is making a lot of noise and it is not the good sort. Traders who have continued to buy DOGE/USD and look for reversals higher have likely been met with poor results. DOGE/USD saw additional selling momentum this weekend like the broad cryptocurrency market.

Amazingly, DOGE/USD still has a market capitalization of approximately 7.7 billion USD. DOGE/USD is ranked as the 10^th largest cryptocurrency still within the broad market. DOGE/USD has no utilitarian purpose, except as a speculative wager. Let’s take a moment to consider that a little more than a year ago many of the Dogecoin influencers were making the bold prediction it would hit 1.00 USD. A visit to Reddit now and a search of Dogecoin essentially shows many folks are disgruntled.

Before the weekend DOGE/USD was actually trading near the 8 cents level.  People who decided to buy into DOGE/USD on Friday the 10^th of June are likely not happy right now. If DOGE/USD breaks below 5 and half cents short term, fears of it falling below 5 cents would not be farfetched. On the 5^th of April DOGE/USD was trading slightly below 18 cents.

Traders who want to sell DOGE/USD should be careful, but they might be making a worthwhile speculative bet. The mask Dogecoin has worn has always been self-evident. DOGE/USD has been a speculative place to wager, which it can be argued has served as a barometer of the broad cryptocurrency market. The negative bearish trend is strong and speculators who actually want to be buyers under the present conditions should know that they may be spitting into the wind. Conservative amounts of leverage are advised when betting on DOGE/USD.

Dogecoin Short-Term Outlook

Current Resistance: 0.06190000

Current Support: 0.05690000

High Target: 0.06720000

Low Target: 0.04710000

XRP/USD has demonstrated a sharp move lower in early trading as a nervous weekend of trading has continued into Monday morning.

As of this writing, Ripple is trading within sight of the 68 cents level, but only a few hours ago XRP/USD was trading near the 70 cents mark.  On the 21^st of April XRP/USD was trading near the 76 cents juncture, and the trend downward which has been in effect since the 28^th of March in Ripple has not shown much ability to reverse higher. On the 28^th of March it should be noted that XRP/USD was trading above the 90 cents ratio.

This morning’s spike lower touched the 67 cents mark and this value had not been traded seen since the last week of February.  XRP/USD was able to display an upwards trend for a few weeks in March, but sentiment has clearly shifted once again and nervous selling has taken control. The question for speculators in the short term is whether the rather exuberant amount of selling is about to end or if additional depths will be seen.

Technical traders will need to look at mid-term charts to gather a proper perspective regarding potential support levels. Certainly day traders who want to pursue reversals higher can wager on this type of momentum developing, but the trend for nearly four weeks has shown that bearish momentum is still in control of the cryptocurrency market. If XRP/USD begins to test depths below 67 cents, and the 66 and 65 cents marks are approached, trading could become more volatile near term.  

The fact that Ripple is now within plain sight of values not tested since February is a poor signal. XRP/USD may be acting as an early indicator within the cryptocurrency market, Ripple is a utilitarian digital asset used in the banking payments sector. The notion that XRP/USD started rising in price slightly before many of its major crypto counterparts in early March, and has now stumbled to problematic lows not seen since February may be a negative sign for things to come.

Sellers of XRP/USD cannot be faulted for believing a speculative wager on more downside may prove to be worthwhile. Cautious traders may want to wait for slight moves higher to initiate their selling positions,while betting on a downturn to develop and continue what has proven to be a rather solid bearish trend. If XRP/USD cannot sustain the 0.67650 level today and shows more vulnerability, it is not unreasonable to suspect Ripple could fall below 67 cents again sooner rather than later.

Ripple Short-Term Outlook

Current Resistance: 0.68150

Current Support: 0.67210

High Target: 0.70100

Low Target: 0.64950

In the short term, I suspect that Bitcoin is going to continue to go back and forth, as we are trying to figure out where to go next.

Bitcoin did very little on Friday as liquidity was very thin during the Good Friday holiday. The $40,000 level is an area that attracts a lot of attention, and it makes quite a bit of sense. The last couple of days have been very sideways and noncommittal, so I think that tells you that we just do not have any directionality in the short term.

You should pay close attention to the fact that the most recent large bar was negative, slamming into the $40,000 level. It is very possible that we may break down from here and test the 37,500 level, which is an area where we had seen support previously. Breaking below that level could open up even more selling to reach the $35,000 level.

If we were to turn around and take out the 50-day EMA, it is possible that we could go looking toward the $45,000 level, an area that was previous resistance. Breaking above that then opens up the possibility of a move to the $50,000 level. At this point, the biggest problem with Bitcoin is that the risk appetite of traders around the world has been tested, and at this point, it is likely that until things change drastically, it is going to be difficult for this market to take off to the upside.

Keep in mind that crypto is far out on the risk spectrum, and therefore we need to see a lot of risk appetite out there for Bitcoin to take off. You will probably see a move in the stock market before you see Bitcoin. Furthermore, there has been a strong correlation between the NASDAQ 100 and Bitcoin for some time, so pay close attention to the technology sector and high growth stocks. You can use that as a bit of a secondary indicator, perhaps even a tertiary indicator.

In the short term, I suspect that Bitcoin is going to continue to go back and forth, as we are trying to figure out where to go next. Ultimately, this is a market that I think is going to be quiet, but the longer we go sideways, the more likely we are going to see a bit of momentum building going forward in this market.