Expert Reveals ‘Safest’ Dogecoin (DOGE) Trade for This Cycle: DOGE Price Analysis and Key Levels
A popular crypto analyst known as Altcoin Sherpa is making a bullish case for Dogecoin (DOGE), calling it one of the safest trades to make during the current market cycle. In an X post, the expert laid out several reasons why DOGE could potentially outperform other meme coins.
Altcoin Sherpa is making a bold call on Dogecoin (DOGE), stating that buying it all the way up to $0.40 is one of the safest trades investors can make this cycle. With DOGE currently trading around $0.16, this proposed trade presents a potential upside of 150%. The expert justifies this play by highlighting several key factors:
The Retail Frenzy Factor
According to Altcoin Sherpa, the high popularity and widespread adoption of Dogecoin among retail investors is a key factor that could drive its price higher. The analyst suggests that as the meme coin frenzy reignites, retail traders will likely flock to buy DOGE, creating significant upward pressure on its price.
Elon Musk’s Influence
The expert also highlights the potential impact of Elon Musk, a vocal supporter of Dogecoin, on the coin’s price. A single tweet from the Tesla CEO could potentially “blow it up,” as the analyst puts it, referring to the coin’s price.
Liquidity and Downside Protection
Another advantage of DOGE, according to the analysis, is its high liquidity and relatively low downside risk compared to other meme coins. This makes it an attractive option for traders looking to minimize potential losses while still benefiting from potential upside.
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Show more +DOGE Price Analysis
To support the bullish stance, the expert cites a technical analysis by AltFINS, which suggests that DOGE is currently in an uptrend and could potentially break out from a sideways channel between $0.13 and $0.17.
According to the analysis, a breakout above the $0.17 resistance level could signal a continuation of the uptrend, with a potential 25% upside to $0.20. The stop loss level is set at $0.155, while key support levels are identified at $0.13 and $0.11.
Source: altFINS – Start using it today
The analysis also notes that the short-term, medium-term, and long-term trends for DOGE are all bullish, with bullish momentum indicated by the MACD indicator, although momentum could be nearing a downswing based on the declining MACD histogram bars.
While the expert acknowledges not holding any DOGE at the moment, the analysis suggests that Dogecoin could be a relatively safe bet for traders looking to “sit around on their bag” and potentially benefit from the meme coin craze without actively managing their positions.
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