DOGE/USD enjoyed a glamorous month in February as it caught the attention of speculators, the media and key influencers.
DOGE/USD soared to record highs early in February when it got a shockingly strong amount of interest, after a video with Elon Musk was aired which asked for his thoughts about the cryptocurrency. Dogecoin suddenly found itself soaring from a low just below three cents on the 1st of February to a height within shouting distance of nine cents on the 7th.
Since those highs achieved at the end of the first week in February, DOGE/USD has floundered and has incrementally seen support levels prove vulnerable. Since the 15th of February, Dogecoin has seen the five cents level act as a magnet for the cryptocurrency. As of this writing, DOGE/USD is hovering slightly above four-and-a-half cents.
On the 23rd of February, DOGE/USD did test lower support around the 0.04200000 mark, but it managed to hold onto its value and stage a reversal higher and actually touched the six cents level the very next day. Do not be fooled by the small amounts of stated value within DOGE/USD; it is very much a speculative asset which can produce great profits and dramatic losses if an excessive amount of leverage is being used. Traders need to practice their risk management skills wisely within DOGE/USD because it is volatile.
The question speculators need to ask themselves is if DOGE/USD can attract the kind of attention it received in early February and mount another upwards climb which challenges resistance levels again. The simple answer is – yes it can. However, speculators may have some doubts about the ability of Dogecoin to effectively muster another influencer with the stature of Elon Musk in the near future who will be willing to put their name on the line and talk about DOGE/USD glowingly.
DOGE/USD certainly needs to be taken seriously as a tradable speculative cryptocurrency. It is ranked highly within the scope of transactional values and currently holds the position of number fourteen per its market cap. However, skeptics of DOGE/USD may believe the move higher was too much, too soon for the cryptocurrency. A rise from nearly three cents to nine cents mathematically is a huge monetary gain when speculative leverage is considered. The sudden incremental bearish track of DOGE/USD to the important support levels it is now traversing should not come as a surprise as some traders cash out their positions.
From a risk/reward viewpoint and a one-month outlook for March, it is difficult to believe DOGE/USD has the capability to recapture highs attained in February. If Dogecoin is able to muster bullish momentum, it may be lucky to trade above six cents considering current risk sentiment. Things can change fast, however, in the cryptocurrency world, and using limit orders remains a priority. Speculative traders may want to consider selling DOGE/USD if it continues to languish slightly below the five cents ratio and use this resistance level as a means to activate short positions.
Dogecoin Outlook for March:
As the month of March gets ready to get set, the speculative price range for DOGE/USD may be around two-and-a-half cents regarding potential lows for support and a high which may attain seven cents.
Important support levels are being tested and, if the 0.04200000 fails to hold, DOGE/USD could soon face additional headwinds and sink towards lows of 0.036000000. Should this lower juncture prove vulnerable it is conceivable DOGE/USD could fall to two-and-a-half cents.
Resistance since mid-February has been difficult to overcome. First, the five cents level will need to be penetrated higher, then a target of five-and-a-half cents could be justified. If there is additional momentum, a test of six-and-a-half cents could be the focus. A high water mark for DOGE/USD may be able to be justified around seven cents, but this may prove difficult to attain.