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

As things stand right now, there’s almost no real reason to suspect that the stock market will go higher for a bigger move.

The S&P 500 went back and forth on Thursday as we continue to hear a lot of noise in this general vicinity. I do not anticipate that this is going to get any better over the next couple of days, because we do have the jobs number coming out on Friday, which in and of itself will cause quite a bit of noise. Because of this, I would not ask too much of the market, but a short-term trade could be setting up.

Looking at the candlestick from the Tuesday session, we have formed a little bit of a shooting star, just as the candlestick from Wednesday is a little bit of a hammer. Typically, when we see a move out of this type of setup, you get a little bit of pop higher or some type of selloff. That being said, I think it is likely that at the end of the day on Thursday, the market will slow back down until 8:30 AM EST when the jobs number comes out in the United States. At that point, I would anticipate a lot of noisy behavior, and of course, the S&P 500 futures will be the epicenter of a lot of trading.

It is worth noting that we pulled back from the 50-day EMA during the trading session on Tuesday, but now that we have pulled back from there, it certainly shows that there is a bit of resistance. Even if we break above the top of the candlestick, it’s very likely that the 4300 level is your next major area of selling pressure. It is at the 4300 level and the 200-day EMA convergence that we would see a significant shift in the trend.

As things stand right now, there’s almost no real reason to suspect that the stock market will go higher for a bigger move. The conditions for a rally simply are not there, and I think it’s only a matter of time before more concern comes back into the market. Pay attention to the bond market, because it can give you a little bit of a “heads up” as to where we’re going. The market will be interesting to pay close attention to at the end of the day on Friday, because where traders park their money heading into the weekend tells you quite a bit.