Short-Term Range Fight as Speculators Make Wagers

Hj Azhar RamliMarch 31, 2022

0 8 2 minutes read

DOGE/USD has been able to achieve gains the past two weeks of trading, but short-term selling has been seen due perhaps to profit taking.

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DOGE/USD is trading near 14 and a quarter cents as of this writing. On the 28^th of March, DOGE/USD was able to climb above the 15 cents juncture, but Dogecoin has seen a reversal lower occur as some speculators may be cashing out and taking profits. DOGE/USD has done a relatively solid job of maintaining its gains the past two weeks and has incrementally climbed. On the 14^th of March DOGE/USD was trading near 11 cents.

Intriguingly DOGE/USD has not been able to challenge mid-term resistance like many of its major counterparts in the broad cryptocurrency market. This may be a sign that DOGE/USD has lost some of it speculative zeal and has been replaced by other ‘favorites’ where traders pursue volatility. However, even if this is true, the current value of DOGE/USD may prove to be an opportunity for bullish speculators if they believe DOGE/USD remains in oversold territory.

While Dogecoin offers no real utilitarian use except for wagers on direction, DOGE/USD still serves a barometer regarding broad cryptocurrency market sentiment. On the 13^th of February DOGE/USD was trading near the 15.75000000 level and continued to trend down from there and put in lows on the 24^th of February near 10.50000000. Since then DOGE/USD had traded in range, largely between 11 and 13 cents.

However since the 14^th of March, DOGE/USD has mirrored its major digital asset counterparts and mounted a steady move upwards. Yes, there have been reversals lower, but incrementally DOGE/USD has gained, and on the 26^th of March Dogecoin was able to trade above 14 cents for the first time since the third week of February. The ability to climb above 15 cents two days later continued its climb. Profit taking in DOGE/USD is a legitimate concern, because many short term traders are certainly willing to cash in profits if they have made 10% or more on a move.

If DOGE/USD is able to maintain its 14 cents ratio and build consolidation in the short term, traders cannot be blamed for believing more upside price action is possible. Buying DOGE/USD on slight reversals lower and looking for higher moves is a potentially worthwhile wager. Entry price orders are needed with DOGE/USD to guard against ‘odd’ fills. Looking for upside action to 14 and half cents and perhaps even a retest of 15 cents with Dogecoin near term may prove to a good speculative decision.