DOGE/USD stumbled to fresh short-term lows in early trading this morning as jittery sentiment across the broad cryptocurrency markets gathers momentum.
DOGE/USD crosses near 12 cents in early trading this morning and is moving along a very vulnerable support level. Dogecoin may have fallen out of favor as the cryptocurrency world’s favorite speculative digital asset with the emergence of competitors like Shiba Inu over six months ago, but DOGE/USD needs to be watched carefully today. today.
DOGE/USD certainly traded lower last week and is testing support levels which, if broken lower, could produce additional fireworks for speculators. Importantly, while DOGE/USD trading is falling this morning, the cryptocurrency still held some of its value above mid-March lows. While many of the other major cryptocurrencies broke vital lows in February and January 2022, DOGE/USD somehow held its value above the critical lows that saw the 11 cent mark tested in March.
This seemingly odd notion suggests that it proves that DOGE/USD is a bunch of stubborn traders. Long-term Dogecoin holders may not be willing to sell DOGE/USD no matter what and may be willing to go down with the ship, meaning this is why prices for the speculative asset haven’t technically hit the lows of its major counterparts. However, it also underlines that DOGE/USD could be approaching a critical moment. If more selling occurs in the short term and vital lows are broken, long term holders may be forced to sell their positions.
If DOGE/USD falls below the 12 cent mark and cannot rally above the short-term value, it may indicate that further selling will develop in Dogecoin and the broader cryptocurrency market. Even though DOGE/USD may no longer be the brightest speculative star in the cryptocurrency world, Dogecoin still has a stable group of followers who love its unique speculative landscape. If DOGE/USD drops below 12 cents and the 11.5 cents level is challenged, this could trigger shock waves.
Once considered the darling of the cryptocurrency speculative crowd with talk suggesting that DOGE/USD could one day trade above the US dollar, DOGE/USD is now in serious danger of seeing the 10 cents appear. DOGE/USD is a speculative asset. Traders who wish to pursue short Dogecoin positions within the existing downtrend cannot be blamed, but risk management should be practiced. If DOGE/USD falls below 12 cents in the near term, the 11½ cents and lower depths could be legitimate betting targets. Careful leverage and the use of stop loss and take profit orders are highly recommended.
Dogecoin short-term outlook
Current Resistance: 0.12620000
Current support: 0.12090000
High target: 0.13390000
Low target: 0.10910000