When many people talk about Dogecoin’s skyrocketing, I guess the ultimate purpose of talking about it is not to analyze why Dogecoin’s skyrocketing, but to know how long this increase will last and whether it is worth buying now.
I remember when Musk called a single Dogecoin a while ago, we used to talk about Dogecoin. At that time, I thought it would be difficult to sustain this rise, and it would be difficult for Dogecoin to build a strong consensus like Bitcoin.
Because from a technical point of view, Dogecoin is nothing new, and it did not perform very prominently in the last few rounds of bull markets. It is at best an old currency with a certain die-hard fan base. Then it's soaring before and now is undoubtedly mainly from Musk's call.
How long and how strong the power of such an order can be, I guess many friends know it, it is unsustainable. But why is there still such FOMO sentiment? I guess everyone knows that this is a bubble, but no one knows when the bubble will burst, so I just danced with the bubble.
When investors have this mentality, they are in fact a gambling mentality-thinking that they will not be the last to take the order, thinking that someone must be stupid than themselves and able to take their own order.
I always emphasize in my articles that in the investment market, if you want to live long and make long-term profits, a stable and rational mentality is fundamental. If you have the above mentality, even if you are lucky enough to make a profit in this Dogecoin gambling, it is very likely that you will lose the money you earned this time in some other pit in the future.
Open the trend chart of Dogecoin in coinmarketcap.com, we will find that the skyrocketing of Dogecoin probably started around December 12th last year. The price of Dogecoin was about $0.003 at that time.
If we are only bullish on the rate of increase, we will be very shocked, and then regret: Why didn't we buy it in the first place? At this time, we might as well pull the timeline back to December 12th last year, recall the market conditions at that time, and then ask ourselves from the bottom of my heart, why should I buy Dogecoin on that day?
At that time, I wanted to be stable, I wanted to invest in Bitcoin and Ethereum, I wanted to have high risks and high returns, DeFi, and even NFT. In this way, there are dozens of coins for us to choose from in total. Why do we look at this old currency that hasn't been paid attention to for "a hundred years"?
If you can't find the reason, it can only be said that the subsequent surge in Dogecoin was accidental. Since it is accidental, then we don't need to be too obsessed with such things, because it is God's will, not human.
If someone really has the inspiration to predict that Dogecoin will be taken by Musk later, then this illustrates another point I often mention: it is difficult for investors to earn money beyond their knowledge. After all, there are only a handful of people who can have this kind of inspiration, so most investors cannot earn this kind of money. Since this kind of opportunity does not belong to the public, then we should treat its skyrocketing with a peaceful mind . Such a FOMO mentality.
If we look closely at the trend chart of Dogecoin, we will find that it reached the highest peak of $0.07 on February 10 this year, and then began a sharp decline. On February 24, it fell to the lowest point of $0.045, and then The next month will last until March 27, and it has been hovering between 0.04 and 0.05 dollars.
Looking back at this trend now, we can also ask ourselves: If we bought before this plunge, would we regret that we shouldn’t follow the venture to speculate, or we are very convinced that the future of Dogecoin will definitely be there. A bright future so that you can hold it with confidence?
I believe that the vast majority of investors are the former-unable to withstand the torture of the plunge and leave the market.
Of course, there is another possibility to buy during this plunge. In this regard, we might as well ask ourselves, during that time, Bitcoin, Ethereum, and many DeFi star coins have plummeted.
Why don't we buy those varieties but prefer to buy Dogecoin?
Through this kind of replay, we can ask ourselves more questions like those above and we will find that for many investors, many so-called "opportunities" are not so much opportunities as luck.