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

We expect the index to return to decline during its upcoming trading.

The Dow Jones Industrial Average rose during its recent trading at the intraday levels, to achieve gains in its last sessions, by 0.70%. It gained about 238.06 points, at the end of trading at the level of 34,049.47, after declining in Friday’s trading by -2.82%.

US stocks rose late in the session on Monday, ahead of earnings reports from major tech names later this week, with the Dow Jones Industrial Average posting its biggest intraday turnaround in two months, as investors shrugged off early fears linked to expanding China’s COVID shutdowns.

In US economic news, Chicago Fed activity fell to 0.44 in March, a three-month low, from 0.54 the previous month, in line with a drop to 0.45 in a Bloomberg survey. The Dallas Fed Manufacturing Survey fell to 1.1 in April from 8.7 in March, with lower production and employment readings offsetting gains in new orders and prices.

Technically, the index is moving in its recent trading within the range of a bearish corrective price channel that limits its previous trades in the short term, as shown in the attached chart for a (daily) time period. Its recent rise compensates part of what it incurred from previous losses, and at the same time it is trying to discharge some of its clear oversold areas using the relative strength indicators, especially with the beginning of a positive crossover in them.

Therefore, we expect the index to return to decline during its upcoming trading, as long as the resistance level 34,665.50 remains, to target the pivotal support level 32,578.70.