Dogecoin (DOGE) has been making headlines recently as analysts and traders express their bullish sentiment towards the coin.
According to Altcoin Sherpa, a prominent cryptocurrency analyst, trading DOGE to $0.40 is considered one of the safest trades one can make in the current market cycle.
Retail Investors to Drive Dogecoin’s Price
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One of the primary reasons behind Altcoin Sherpa’s confidence in Dogecoin’s potential is the anticipated influx of retail investors. The analyst believes that retail investors will eventually “buy it up,” driving the price of DOGE higher.
Dogecoin’s popularity among retail investors has been a major factor in its previous price surges. This trend is expected to continue as the cryptocurrency market gains mainstream attention.
Elon Musk’s Influence on Dogecoin’s Price
Altcoin Sherpa also highlights the potential impact of a single tweet from Elon Musk. Musk has been a vocal supporter of DOGE, often tweeting about the cryptocurrency and even referring to himself as the “Dogefather.” The analyst suggests that “all it takes is 1 retarded Elon tweet to blow it up,” implying that a single endorsement from Musk could trigger a significant price surge for DOGE.
Musk’s influence on the cryptocurrency market, particularly DOGE, has been well-documented. His tweets have often led to sudden spikes in the price of DOGE.
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Dogecoin’s Liquidity and Low Downside Risk
Another factor contributing to Dogecoin’s appeal as a safe trade is its high liquidity and relatively low downside risk compared to other meme coins. Altcoin Sherpa notes that DOGE “has great liquidity/low downside relative to other memes,” suggesting that investors can enter and exit positions more easily without significant price slippage.
Moreover, the analyst believes that Dogecoin is likely to outperform many other “shitcoins.” This implies that even in a market downturn, Dogecoin may fare better than other speculative coins.
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Whales Accumulating DOGE
Adding to the bullish sentiment surrounding Dogecoin, trader Ali has reported that Dogecoin whales have been actively accumulating the cryptocurrency. According to Ali, these whales have bought over 700 million DOGE, worth approximately $112 million, in the past 72 hours.
The accumulation of Dogecoin by large investors, known as whales, is often seen as a positive sign for the coin’s future price performance.
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