There are always exceptions to every rule but in the world of finance sections of stocks tend to rise together. Meaning that investors in one sector of the market should hope for the success of all businesses in their sector unless they invest with specific reasoning.
Crypto works exactly like this but only in a more blatant way. If Bitcoin slides all altcoins slide with it meaning that all holders of altcoins such as DOGE should hope that Bitcoin leads the way and allows other coins to prosper. This may change in the future but for now, the market is controlled by the success of Bitcoin in a large way.
There is a time however when other coins can emerge from the shadow of Bitcoin. Altcoin season is the name given to the period of time when alternative coins achieve more gains than Bitcoin. This tends to happen after Bitcoin has seen a huge spike in price and finds some level of support and goes through a consolidation period.
This is when holding a coin like DOGE can be very profitable and where we are likely to see the majority of its gains. If you are new to the crypto cycles you may be concerned by this latest price movement but there is no real reason for concern.
The price of DOGE went up about 900% in the space of a week and there is always the possibility this could happen again. This is especially true when you consider the market cap is dwarfed by other altcoins.
The Importance OF Having A Diverse Portfolio
It is always advised that people purchase different Altcoins so they can hold a diverse portfolio. Even though the market does rise at one there are occasions where certain coins like Cardano and Litecoin announce major upcoming events and tech changes that can have a great return in price.
DOGE is another example of this as Musks tweet made the coin rise 900% while others were celebrating a 20% rise. Another example of this would be that Cardano is at a higher price now than it was before this significant dip.
Is Now A Good Time To Buy?
If we use Bitcoin as our metric, now would appear to be a good time to purchase any type of cryptocurrency since at the time of writing Bitcoin has gone down to $44K. This is a significant drop in price from when it peaked at $58K just a week ago. This correction although not guaranteed is certainly not out of the ordinary and it’s always great if you can buy more crypto before the price starts rising again.
The general consensus around Crypto is still bullish with many experts predicting the price of Bitcoin will be between 100-300k by the end of the year. If this is the case then DOGE with the continued help of Elon Musk should see a similar gain. Conservatively placing DOGE between 25 to 40 Cents.