Dogecoin (DOGE) walks before Bitcoin, when should you square off?

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It would be interesting to find out how much you know about Dogecoin (DOGE) before you read this article. The chances are that you’re not completely ignorant about it because you clicked on the link that brought you here. But we’re wondering about that because Dogecoin is not a cryptocurrency that gets a lot of attention from the crypto-press, let alone the mainstream. And yet, it’s following Bitcoin’s footprints closely.

Dogecoin has been hot lately. If you are one of those rarities, a Dogecoin holder, you’ve probably spent quite a bit of time asking yourself (or friends in the Dogecoin community) if your DOGE coins are worth it, if they will rise in value again, why and when they will, and many other questions along those lines.

So you must have been quite excited to see when it went above the USD 0.002800 resistance level, which means it’s soaring. If you doubt so, then let us tell you that then it broke yet another resistance level, the one at USD 0.0030. As we write this, it trades at $0.003110, and it’s lost 3.91% against BTC over the last 24 hours, so after those gains, traders are looking to figure out what’s the moment to take their profits.

Most cryptocurrency prices were going up rather quickly yesterday against the USD. Dogecoin was rising more slowly, but more steadily too. It probably looked a bit too slow for Dogecoin fans (like Elon Musk), but a more gradual and more solid rise implies less volatility which means that the market corrections, should they show their ugly face, won’t be as bad as they will be for tokens with higher volatility.

And yet, if Dogecoin was yesterday’s underperformer, today it has gained 4.49% in its USD trading pair.

Market Outlook

The cryptocurrency market has been soaring since last Friday night, UTC. So it’s only regular that there’s something of a market correction going on as we write this. Bitcoin is up by more than 8% even though we just came out of a weekend. The exciting thing is that Dogecoin’s price is closely following Bitcoin’s pattern, which is something of a David vs. Goliath situation. Chances are, however, that the BTC bull run isn’t over yet and that it will find its way above the USD 9k level soon. And as Bitcoin goes back up, the crypto verse is likely to follow suit, Dogecoin included. Which brings us again to the question; when should a smart investor square off its DOGE postures?

The answer isn’t evident for most investors. The thing is that the bull run is not over, DOGE is still doing well against the USD (with the unavoidable fluctuations), and before the bulls give way to the bears this time, it’s expected for Dogecoin to reach the USD 0,005 level. That, of course, would be the ideal time to cash your profits out, should you have the opportunity.

The important thing for any DOGE holder (or any investor in any market, for that matter) is to have a plan and follow it with the utmost discipline. That’s the tricky part. It’s probably a lot more difficult for excited investors to remain calm and exert restraint than for Dogecoin to get over USD 0,005.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Naveed Iqbal: A crypto nerd, internet security wizard. Believer of 'decentralization' in real. Love helping others and spreading information worth sharing.