Dogecoin Should Be Watched as Key Crypto Metric

9 May 2022

in DOGE

Reading Time: 2 mins read

DOGE/USD has stumbled to new short term lows in early trading this morning, as nervous sentiment in the broad cryptocurrency markets picks up momentum.

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DOGE/USD is traversing near 12 cents in early trading this morning and it is moving along a very vulnerable support level. Dogecoin may have lost its favor as the favorite speculative digital asset in the cryptocurrency world with the emergence of competitors like Shiba Inu over six months ago, but DOGE/USD should be watched carefully today.

DOGE/USD has certainly traded towards lower values the past week and it is testing support levels which if broken lower could produce additional fireworks for speculators. Importantly as DOGE/USD trades lower this morning, the cryptocurrency has still maintained some of its value above mid-March lows. While many of the other major cryptocurrencies have broken vital February and January 2022 lows, DOGE/USD has somehow sustained its value above critical lows which saw the 11 cents mark tested in March.

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This seemingly odd notion leads itself to the belief that this proves DOGE/USD are a stubborn group of traders. Long term Dogecoin holders may not be willing to sell DOGE/USD no matter what happens and may be willing to go down with the ship, meaning this is the reason prices for the speculative asset have not reached the lows of its major counterparts technically. However it also highlights that DOGE/USD may be approaching a critical juncture. If more selling occurs short term and vital lows are broken, long term holders may be forced to sell their positions.

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If DOGE/USD falls below the 12 cents mark and cannot climb back above the value in the short term, it may signal additional selling is going to develop in Dogecoin and the broad cryptocurrency market. Even though DOGE/USD may not be the brightest speculative star in the cryptocurrency world anymore, Dogecoin still has a steady group of followers who like its unique speculative landscape. If DOGE/USD sinks below 12 cents, and the 11 and a half cents level is challenged, this could set off shock waves.

Once considered the sweetheart of the cryptocurrency speculative crowd with talk suggesting DOGE/USD could trade above a U.S dollar one day, DOGE/USD now is in serious danger of seeing the 10 cents juncture come into view. DOGE/USD is a speculative asset. Traders who want to pursue selling positions of Dogecoin within the existing bearish trend cannot be blamed, but risk management needs to be practiced. If DOGE/USD breaks below 12 cents short term, the 11 and half cents and lower depths could be legitimate wagering targets. Careful leverage and use of stop loss and take profit orders are highly urged.