A crypto analyst has encouraged investors to invest in doggy-themed cryptocurrency, Dogecoin (DOGE), emphasizing that purchasing this meme coin in anticipation of a bullish rally was the safest trade anyone can make.
Dogecoin Is The Safest Trade For Investors
In a recent X (formerly Twitter) post, a crypto analyst identified as ‘Altcoin Sherpa,’ has expressed optimism about Dogecoin’s future outlook and its potential as a profitable investment. The analyst has suggested that investing in DOGE with the expectation that its price will skyrocket to $0.4 is one of the safest trades for investors in the crypto market.
Notwithstanding the fundamental volatile nature of meme coins, Altcoin Sherpa has outlined several factors that could act as a bullish catalyst for DOGE. Sharing a price chart of Dogecoin, he revealed that retail investors are likely to purchase and accumulate Dogecoin, potentially fueling a price increase as demand for the cryptocurrency surges.
Additionally, the crypto analyst noted the considerable influence social media trends had on a meme coin’s value. He disclosed that a single X post from SpaceX and Tesla Chief Executive Officer (CEO) Elon Musk about DOGE could significantly propel its price to new highs.
This scenario was proven earlier in 2019 when Musk tweeted about Dogecoin, stating that “it might be his favorite cryptocurrency,” and “it was pretty cool.” The effects of this tweet had a historical impact on Dogecoin’s ecosystem, as the cryptocurrency’s price skyrocketed after gaining recognition from one of the world’s most influential billionaires and investors.
Altcoin Sherpa has also pinpointed Dogecoin’s great liquidity which makes it easy to buy and sell without any adverse effect on its price. He also emphasized that the doggy-themed cryptocurrency had a relatively low downside risk compared to other meme coins in the market. As a result, the crypto analyst expects DOGE to outperform other “shit coins” in the market.
Altcoin Sherpa has revealed that he currently does not hold any Dogecoin; however, he believes it is a great investment for investors looking to take a passive approach and hold onto their investments in preparation for a bullish surge.
Whales Scoop Up Millions Of DOGE
Crypto whales are beginning to show renewed interest in Dogecoin, accumulating significant amounts of the doggy-themed cryptocurrency. According to crypto analyst, Ali Martinez, Dogecoin whales have purchased more than 700 million DOGE tokens valued at approximately $112 million.
Martinez disclosed this transaction in an X post on May 31, highlighting that the purchase occurred in a span of 72 hours. This surge in whale activity comes at a time when DOGE has been relatively stable, experiencing slight increases as pessimistic market conditions wane.
At the time of writing, Dogecoin is trading for $0.159, reflecting a 24-hour increase of 0.6% and a 15.07% price surge over the past month, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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