DOGE/USD has produced a powerful dose of consolidation the past five days of trading, as it has essentially lingered within the 8 cents framework.
Once one of the favorite speculative cryptocurrencies in the world, Dogecoin has seen a strong dose of consolidation displayed within its trading sphere the past handful of days. The 8 cents price has seen an array of values above this ratio since the 19th of May, but DOGE/USD has not been below the 0.0814 mark or above the 0.08882 levels since then. Traders who are die-hard speculators have been drawn to Dogecoin the past couple of years because it has provided plenty of volatility to bet on.
The long term bear cryptocurrency market has pushed DOGE/USD to long term lows and its trading volume is diminishing in overall numbers. Dogecoin is trading at one year lows and if a sudden burst of selling were to develop it could find that a sincere test of values from April and March of 2021 could be displayed.
The broad cryptocurrency market remains troubling regarding its nervous sentiment. However, Dogecoin’s major counterparts have seen reversals ebb and flow. Yes, the trading in DOGE/USD as it moves within the 8 cents juncture does produce large percentage changes of 10% within a blink of an eye, but the lack of a real move towards the 9 cents level the past couple of days may be troubling regarding sentiment in Dogecoin. Traders need to take into consideration the fees they pay for speculating on DOGE/USD, and calculate if the winnings from short term trades equate into gains after transaction fees are charged.
While a large amount of nervous sentiment remains in the broad crypto market, this may signal less people are willing to speculate on DOGE/USD, which could mean it will remain in a consolidated mode. If DOGE/USD fails to lift higher when reversals are seen in the broad crypto market, even for a short duration, this could signal traders are being cautious with Dogecoin and expect another selloff to develop technically.
If DOGE/USD were to fall below the 0.0835 mark, this would be a negative sign short term. Speculators need to use their risk management wisely when trading DOGE/USD. The consolidation within Dogecoin could evaporate quickly.
Cautious traders who remain skeptical of the current trading conditions in the cryptocurrency market and believe more selling will be seen may want to be sellers of DOGE/USD. Looking for upside price action towards nearby resistance levels like the 0.0873 mark and then launching ‘short’ positions while aiming for support below could be the correct bet within Dogecoin in the short term.
Current Resistance: 0.08710000
Current Support: 0.08430000
High Target: 0.08880000
Low Target: 0.08230000