In the world of cryptocurrency investment, there are many different options for investors depending on their risk tolerance and investment strategy. For those wanting direct exposure, owning Bitcoin or Ethereum are the two most popular options. Conversely, some choose to invest indirectly through publicly listed companies like Coinbase Global, Circle, or Robinhood Markets – businesses that are closely related to the cryptocurrency market.

However, alongside traditional assets, in recent years, a name has surprisingly emerged and attracted widespread attention: Dogecoin (CRYPTO: DOGE) – a currency that started as a joke but once reached a market capitalization of tens of billions of USD. So what has made Dogecoin stand out? And is the current price around 0.17 USD an attractive opportunity to 'catch the bottom' or not? Let's analyze further.

The Boom of Dogecoin: The Craze Named 'DOGE'

Throughout most of 2024, Dogecoin's price remained relatively stable, fluctuating slightly around 0.10 to 0.15 USD. However, from November to the end of December, Dogecoin suddenly surged from 0.15 USD to a peak of 0.47 USD, causing a wave of FOMO (fear of missing out) in the cryptocurrency investment community.

The reason for this price surge, according to many observers, may stem from a significant political event in the U.S.: the victory of former President Donald Trump in the 2024 presidential election.

Immediately following this victory, the Trump administration announced the establishment of a new agency called the Department of Government Efficiency (abbreviated as DOGE), with the initial head appointed as the CEO of Tesla – Elon Musk.

With a history of frequently mentioning Dogecoin on social media, from posting humorous memes to mentioning Dogecoin on the 'Saturday Night Live' show, Elon Musk has become one of the most influential figures on the value of this currency.

Thus, when the U.S. government established an agency named 'DOGE' and linked Musk's name to it, market sentiment quickly reacted – creating a surge based on expectations, despite a lack of real foundation.

Historical Pattern: Opportunity or Illusion?

Looking back at the Dogecoin price chart over the past 5 years, one notable point can be observed: each time DOGE approaches the 0.15 USD range, a short-term price surge usually occurs, pushing the price up to the 0.20 - 0.22 USD range before being sold off again.

This is a fairly clear price pattern – characteristic of 'short-term speculative waves', triggered by news or social media effects, but lacking support from long-term fundamentals. And if history repeats itself, Dogecoin at the current price level may be preparing for a short 'bounce' before continuing its downward cycle.

Is Dogecoin an Investment Opportunity?

Although it has the potential to create short-term waves, Dogecoin is still considered a high-risk asset. Unlike Bitcoin or Ethereum – two currencies with strong technical infrastructure, widely used in DeFi and value storage – Dogecoin lacks practical utility and most of its growth comes from 'social media frenzy'.

Elon Musk himself has previously denied that the U.S. government intends to use Dogecoin for any official purposes. This has quickly extinguished the associations between DOGE (government agency) and Dogecoin.

Conclusion: Don't Get Caught Up in the Speculative Frenzy

Although Dogecoin may still have a bit of short-term upside due to psychological factors and technical analysis, investors need to be extremely cautious. Buying in at 'cheap' price levels with the hope of doubling or tripling is a dangerous strategy if lacking risk management.

If you are a long-term investor looking for practical, highly secure, and widely accepted assets, then Dogecoin is not the right choice. But if you are a short-term speculator, remember: get in quickly – get out quickly – and always have a clear stop-loss plan.

Dogecoin may be a fast-moving train, but not everyone can jump off at the right time.