Firstly, if this is the first big-time dip you have witnessed in the crypto markets then it must be difficult to comprehend what is going on. The markets have declined significantly and several altcoins are trading below almost 100% from what they were just a few weeks ago. What no one wants to do however is, sell all of their cryptos before we see a great recovery.
The problem is, the more the market tanks the harder it is to believe that we are going to see such a healthy bounce. But the truth is the harder the market dips the less sense it makes to sell. If you sell now, you will be hoping to buy back in at a lower entry point, and considering the decline, we have seen in recent weeks, a significantly lower entry point might not becoming.
Dogecoin is a tougher assessment to make though as its recovery is more linked to the endorsement of a few influential people than it is reliant on market conditions and fundamentals. Having said this the price of Dogecoin did correlate with most of the other cryptocurrencies during this dip so if the crypto markets were to show strong signs of recovery this would be good news for Dogecoin holders.
Over $1 trillion had been taken out of the markets within the space of one week. If you were to take the positives out of this you might ask, is anybody left to panic sell their DOGE at this point? If the answer is no and we believe Bitcoin won’t dip below $30k again then there is no reason to sell your DOGE, in fact, you can make a very strong case that now is the time to buy more!
One area of concern surrounding Dogecoin is whale manipulation. We revealed a few days ago that a mysterious Dogecoin holder owns more than 28% of the current supply of Dogecoin. Considering the staggering amount of money this would have cost to amass it is very likely that such an account is held by a cryptocurrency exchange.
If they were to sell this amount in one go or a heavy percentage of their holdings this will almost inevitably trigger a big sell-off. Therefore, as always we urge that you trade caution and you recognize the asset that Dogecoin is. It is very likely we will see further gains from this point but make sure you keep your portfolio diversified.
