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Sunday, June 2, 2024
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Reasons to invest in Dogecoin

Dogecoin (DOGE) recently made headlines as analysts and traders expressed their bullish sentiment towards the coin.

According to Altcoin Sherpa a famous cryptocurrency analyst, believes that if anyone likes to invest in meme coins, Dogecoin should still be the number one choice at the present time and in the future.

Retail investors drive Dogecoin price

One of the main reasons why Altcoin Sherpa believes in Dogecoin’s potential is the anticipated wave of retail investment. The analyst believes that retail investors will eventually “buy up,” driving DOGE prices higher.

Dogecoin’s popularity among retail investors was the main factor that caused its price to skyrocket earlier. This trend is expected to continue as the cryptocurrency market gains widespread attention.

Elon Musk’s influence on Dogecoin price

Altcoin Sherpa also highlighted the potential impact of a tweet from Elon Musk. Musk has been a vocal supporter of DOGE, frequently tweeting about the cryptocurrency and even calling himself “The Godfather.” The analyst suggested that “all it takes is one slow tweet from Elon to blow it up,” implying that a single endorsement from Musk could cause the DOGE price to increase significantly.

Musk’s influence on the cryptocurrency market, especially DOGE, has been well documented. His tweets often cause DOGE price spikes.

Dogecoin’s liquidity and downside risk are low

Another factor contributing to Dogecoin’s appeal as a secure exchange is its high liquidity and relatively low downside risk compared to other meme coins. Altcoin Sherpa notes that DOGE “has high liquidity/low drawdown compared to other memes,” suggesting that investors can enter and exit positions more easily without significant slippage.

Furthermore, the analyst believes that Dogecoin is likely to perform better than many other “shitcoins.” This implies that even in a market downturn, Dogecoin may fare better than other speculative coins.

Whales accumulate DOGE

Adding to the bullish sentiment surrounding Dogecoin, trader Ali reported that Dogecoin whales are actively accumulating the cryptocurrency. According to Ali, these whales bought more than 700 million DOGE, worth about $112 million, in the past 72 hours.

The accumulation of Dogecoin by large investors, known as whales, is often considered a positive sign for the coin’s future price performance.

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.


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