DOGE/USD has remained under pressure and shown little ability to produce a significant reversal higher as bearish momentum builds.
Speculative bulls within DOGE/USD are having their nerves tested again in early trading today as the cryptocurrency hovers near important short-term support. The 29 cents mark appears to be significant and, if DOGE/USD continues to trade below the 30 cents level, this could set off another wave of negative sentiment. The inability the past couple of days to sustain prices over the 30 cents juncture may also be impacting technical traders who wanted to see a move higher before they stepped in with buying positions.
The last time DOGE/USD traded above the 40 cents mark was on the 20th of May. Since then, the cryptocurrency has struggled quite a bit. On the 25th of May, DOGE/USD did break temporarily below the 25 cents mark with a spike. While this level may have been brushed aside by bullish speculators as a mere flash crash, unfortunately the 25 cents level is still within plain sight after the past few days of trading.
Negative sentiment and poor technical charts are certainly affecting short-term traders. Bearish speculators who have been able to take advantage of the downward trend may be looking at price action within DOGE/USD from the last week of April for an indication regarding future direction. The junctures of 27 to 25 cents may prove to be important and, if they are proven vulnerable, a test of the 20 cents juncture could play out.
Bullish speculators who are looking for a reversal based on the potential DOGE/USD has demonstrated before to produce sudden reversals may be growing impatient. However, it might prove prudent for traders who are seeking higher moves to wait for current resistance near the 31 to 32 cents levels be hit and see sustained values.
Selling DOGE/USD after such a large fall in value may raise the eyebrows of skeptics who believe the cryptocurrency has fallen too much and too hard the past few weeks. However, the trend downward has become rather persistent and, until resistance is sincerely punctured higher, shorting DOGE/USD may prove to be a worthwhile speculative wager. Perhaps traders may want to sell Dogecoin after small reversals higher. Traders are urged to use their risk-taking skills wisely, because volatility is a frequent companion within DOGE/USD.
Dogecoin Short-Term Outlook:
Current Resistance: 0.31500000
Current Support: 0.28000000
High Target: 0.34600000
Low Target: 0.24000000