Dogecoin wonder and price stability ...My Thoughts.
Dogecoin has been one to watch lately. How soon will it reach $1? How will investors react? There are many hodlers of doge that will most like be selling and what till the next buying opportunity comes. So obviously the Crypto space is going through a bull run or phase. I have come to realize and accept that i can not predict when it will happen. I can't predict when it will end either.
Dogecoin is being hyped so much by Elon Musk. As much as i apreciate his interest and voice i am just curious how far his influence will go and how everything will play out eventually. Is he just trying to inflate the bubble faster so it can pop faster and get over this stage quickly? I think so, but what do i know?
I think Doge is in a bubble right now. It has increased within a year by almost 12000%. What kind of asset class does that? Such returns are not typical and it will be hard to not sellif you have made alot of money. Not to give doge a speculative look, it definitely has a utility coming and that will make it very useful however it has to go through maturing . The currency is still so new and young and in a bubble stage. There will be dumping by those who will have made tons of money. Those just coming in will have to hodl and somehow the price will eventually stabilize. The question is when? At what price will doge stabilize? At what price will any crypto stabilize?
Is bitcoin at it's current price stable? Compared to Doge it is more stable. Bitcoin gained 547% within the last 12 months. That says a lot in terms of its maturity. Big companies will be more comfortable investing in an asset that is growing steadily over time rather than fluctuating so much.
So what advice would i give any Dogecoin holdler? prepare to sell now or soon. This coin is not stable at this price and when the whales in the space finally sell their coins like Elon Musk is requesting, that might be one of the factors that help the coin mature faster. This will make it more valuable to bigger investors.
I hope hold is better.