The recent market performance of Dogecoin ($DOGE ) shows a typical right-side breakout and retracement pattern. This pattern first manifests itself as a price breakthrough, followed by a retracement confirmation process. Finally, if the retracement is confirmed successfully, the price tends to accelerate. At present, the price of Dogecoin has reached the vicinity of the previous high point, forming a certain pressure level. If this pressure level cannot be effectively broken, the price may face the need for a high-level pullback and enter an adjustment phase.

In the cryptocurrency market, price fluctuations are often accompanied by changes in market sentiment. Dogecoin has often become the focus of market speculation due to its unique community culture and celebrity effect. However, when investors participate in the trading of such high-volatility assets, they need to be cautious and avoid chasing high prices when prices rise rapidly, but look for buying opportunities when prices pull back. This is in line with the reverse thinking principle in investment, that is, looking for buying opportunities when the market is generally pessimistic and considering selling when the market is generally optimistic.

At the same time, investors should follow some basic trading principles when conducting short-term transactions. For example, avoid trading during sideways periods, as this is often a period when the market direction is unclear and the trading risk is high. In addition, it is also a common short-term trading strategy to decide the time to buy or sell based on the Yin-Yang line of the daily chart. When the downward trend slows down, the rebound is often milder; when the downward trend accelerates, the rebound may be faster.

Finally, when investors trade cryptocurrencies, they should adopt a pyramid buying strategy and gradually increase their positions to manage risks. At the same time, when the currency enters a sideways state after experiencing continuous ups and downs, it is not advisable to rush to sell all positions at high levels or buy all positions at low levels, because there may be a possibility of a change in the market after consolidation. If the high position changes downward, clearing the position in time can avoid greater losses.