DOGE Coin, is the escape opportunity here? What should retail investors do?
Recently, DOGE Coin has become popular, skyrocketing to $0.42, and everyone is talking about it. Some are afraid of missing the last escape opportunity, while others are looking for direction in various leverage. Today, let's discuss the current situation of DOGE Coin and its future direction.
Elon Musk's Influence: Mixed Impact
Musk named a department 'DOGE', and with that move, the price surged. His influence in the crypto circle is undeniable. However, this influence is also a double-edged sword. Trump is not fond of Musk, adding uncertainty to the crypto market. Musk's reform plans are also puzzling; whether they are good or bad will depend on future developments. If the two sides clash, the market will become even more chaotic.
High Selling Pressure, High Arbitrage Risk
Looking at on-chain data, DOGE's spot trading volume has surged, with sell orders accounting for 65%, indicating significant selling pressure. Some may want to take advantage of high prices to arbitrage, which adds more blockage to the market. With such heavy selling pressure, if the buying fails to keep up, DOGE's price will need to correct, posing considerable risk.
Starlink Incident, Expectations Unmet
Originally, with the Starlink launch, everyone was waiting for DOGE to hit a new high, but the price didn't rise, and market sentiment fell instead. It seems that the celebrity effect is not omnipotent; the market is becoming increasingly complex. In the future, such events may have little significant impact.
Advice for Retail Investors: Be Cautious and Flexible
Given the current situation, retail investors should:
Set profit and loss limits: For short-term trading, if you profit, make a quick exit, for example, around $0.42; if you incur losses, accept it, and set a stop-loss around $0.35. Keep a close eye on external dynamics: enterprise decisions, government attitudes, especially major events that can stir market sentiment, such as large collaborations and policy changes. Adapt flexibly to market changes: long-term investors can take their time, reduce some positions to lock in profits, but don’t exit completely; keep some positions to wait for opportunities.
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