Doge (Dogecoin) looking forward, what’s next?
Dogecoin has entered a bearish downtrend phase, and when the overall trend has reversed, any rebounds in between are traps that continuously ensnare people.
Currently, the weekly chart for Dogecoin shows a downward trend. Today is Saturday, and this week's candlestick has not yet closed, with no signs of a stop in the decline. There are two important support levels below.
On the daily chart, after a long period of decline, a reversal signal has appeared, indicating that the downward trend on the daily chart has reversed.
Although there is currently some volatility, it is likely that after this period of fluctuation, a rebound will occur. However, do not be blindly optimistic and assume that it will break the previous high, reaching $1 or $2. The Dogecoin ETF is likely a bait that will ensnare more retail investors.
Some friends may have entered Dogecoin at the previous high and hope it will rise, recover their investment, or even break $1.
We need to view the facts objectively. After a prolonged decline, a rise is very normal.
The key is to clearly understand the overall trend direction of this cryptocurrency. For instance, with Dogecoin, if it has already peaked, even if there is a rebound, it will be difficult to reach a new high again.
If one is unclear about these factors and merely waits meaninglessly for the price to rise to their target, they are very likely to miss the opportunity to break even or cut losses, and will miss out on other quality cryptocurrencies that are increasing.
Whether buying or selling, taking profit or cutting losses, it should not be based on feelings but on judgment derived from the market situation.
Even if currently trapped, when the price rises later, one must be able to promptly assess when it has risen enough and seize the opportunity to take profits.
The most terrifying thing is that it is obvious that one cannot understand the market’s subsequent rise or fall, and the timing of the purchase was already a mistake.
Yet, failing to recognize one’s own shortcomings, they continue to apply the same methods to their future trades, still guessing based on feelings.
In conversations with friends, I often encounter this situation: In the last round, they were trapped all the way down because they couldn’t understand the peak, but now they still cannot judge the top or bottom, only summarizing superficially, "This time I will run a bit faster."
But clearly, many cryptocurrencies have already reached their peaks, and many people are still holding on tightly, obviously trapped again, yet still fantasizing about running faster next time.
