“Dogecoin to the moon! I agree we are moving to a world where it will be a global currency. You should buy it now and become a millionaire in a few months”. Well, no matter how good that sounds for investors, it’s far beyond the truth. Even though Dogecoin increases by 10%, it was based on the fact that Elon tweeted about it. Is another crazy pump on the way? Probably yes! Should you but it? Probably not! Let’s see why do I say so.
Elon’s Tweet increases Dogecoin by 10%
Origin of Doge Day Afternoon:
The ancient Romans sacrificed a Dogecoin at the beginning of the Doge Days to appease the rage of Sirius, believing that the star was the cause of the hot, sultry weather.
— Elon Musk (@elonmusk) March 13, 2021
Elon Musk tweets about Dogecoin, and it raised by 10%. I honestly don’t understand what this means, but it was more than enough to push the prices up again. Elon Musk even replied to a fan asking whether he thinks Coinbase should add Dogecoin support, to which he said yes. All this added up to another pump which has still not ended. This is because while writing this article, it is still up by 10%.
Is investing in Dogecoin a good idea?
Before investing in any cryptocurrency or anything for that matter, you should have a proper understanding of the same. So, that stands true even for Dogecoin. If the main reason why you are planning to invest in it is Elon’s tweet, then it is definitely not a good idea. Let me give you a small exercise! Open Twitter and find all the tweets Elon made about Dogecoin and its timings.
Then go to Tradingview, Webull or any other app that has a Dogecoin trading chart. Now check the timings when the tweets were made and the market reaction thereafter. You will notice a pattern that every time Elon tweets about it, the price skyrockets, but soon after, people start taking profits, and it plummets again. All over, the price has increased by more than 5 times since January but has been struggling ever since.
A good way to look at this is now you know the pattern. One thing that can be done is waiting for the prices to drop and once it does, buy and hold. Next time when Elon tweets about it or some other interesting thing happens, then sell it at a premium. All this is based on my understanding and research, so you should do your own before making any investment.
What are your thoughts on the most recent price increase of Dogecoin? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.