Vital Test of Short-Term Range Facing Speculators

Hj Azhar RamliFebruary 16, 2022

0 9 2 minutes read

DOGE/USD is within the grasp of a middling value within its short-term price range, and traders are faced with a dynamic speculative decision.

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DOGE/USD is trading slightly above the 15 cents level as of this writing. Yesterday’s price action in Dogecoin produced a short term high of nearly 15 and quarter cents, but it then faced a reversal lower. The price of DOGE/USD has actually been within a rather tight consolidated mode the past five days with lows hovering slightly above 14 cents, while highs have not touched 16 cents. This rather tight price action may attract speculators who may believe the consolidation is attractive.

However, DOGE/USD has a habit of producing sudden and violent spikes, and traders therefore cannot rely on what has transpired the past few days to merely repeat. In order to trade DOGE/USD, traders are urged to use entry prices to make sure their fills meet expectations. The rather tight price range of DOGE/USD the past handful of days also is currently resting within the middle of its value targets technically. The use of cautious leverage is strongly advised.

This leaves traders in a position to test their speculative sentiment. The broad cryptocurrency market has been choppy, but many of the major digital assets have provided an incremental climb upwards and seen support levels hold recently. However, the inability of DOGE/USD and many of its major counterparts to surpass important weekly resistance levels and sustain higher values continues to hint that the mid-term bearish trend may not be completely over.

Traders who feel optimistic and believe DOGE/USD may produce higher moves may want to remain conservative with their wagers. One way of doing this may be to attempt buying positions when perceived technical support levels are approached. If a trader feels that the 0.14980000 is a durable support level, they may want to ignite buying positions slightly above this value. Stop loss orders should certainly be used carefully. Traders may want to look for quick hitting trades in the short term.

If speculators remains skeptical about the current cryptocurrency market and believe DOGE/USD has further room to move lower then selling Dogecoin on slight reversal higher may make sense. If DOGE/USD fails to trade above the 0.15150000 level in the short term, traders may believe shorting Dogecoin on slight rises while looking for lower prices to take advantage of may be a profitable trading tactic.