One of the prominent crypto analysts, Altcoin Sherpa, has recently mentioned that Dogecoin (DOGE) is one of the safest trades in the current market cycle. In a recent X post, the analyst highlighted that its price may reach $0. 40, which can be considered as a fairly good potential for investors.
Sherpa also identifies several factors to explain why Dogecoin could still continue growing. First, Sherpa thinks that ordinary users will want to pump up DOGE, which is typical for retail investors. This is because as more investors open positions in the cryptocurrency market, many of the retail investors are likely to buy DOGE and cause the prices to rise.
Second, it is crucial to highlight the impact of Elon Musk, who became the driving force behind Tesla’s success. Sherpa also highlighted that Elon Musk’s simple tweet can influence the price of Dogecoin massively.
Other coins that Elon Musk has endorsed in the past have seen a massive influx in demand which means that DOGE could be a coin to look out for if you’re interested in getting some quick bucks. The volatile yet strong impact of Musk’s tweets on the stock prices brings both the thrill and the possibility of earning money for DOGE investors.
Dogecoin (DOGE) Stability And Lower Risk
Furthermore, Dogecoin has also been commended for its great liquidity and relatively lower downside risk than most meme coins. This liquidity means that it is easy for investors to purchase or sell DOGE without affecting the price significantly, making it a safer investment avenue in a market that is highly unstable.
Furthermore, Sherpa went on to say that DOGE could perform even better than many of the other unknown ‘shitcoins.’ This potential of DOGE to perform better makes it a safer bet for those who are investing in the cryptocurrencies market. Dogecoin is relatively stable, compared to other cryptocurrencies, and it has been around for some time, which makes it less risky than other coins that have not been tested in the market.
However, Sherpa does not own any DOGE at the moment and he suggested that investing in it is suitable for those who do not want to be very active. In his view, Dogecoin can be a good option for those who want to invest in cryptocurrency and hold it for the long term, without constantly following the price fluctuations.
Dogecoin has been recommended by Altcoin Sherpa because of its high possibility of having a great run in the future through the retail market, influential figures, and liquidity. In the future, the cryptocurrency market is promising, and DOGE is one of the most reliable options for investing in cryptocurrency compared to other currencies.
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