Millions of People Will Be Blindsided in 2023. Will You Be One of Them?

On December 13, Louis Navellier, Eric Fry & Luke Lango will reveal the major events that could rock the markets in 2023. Will your money be safe?

Tue, December 13 at 4:00PM ET
 
 
 
 

Dogecoin Harbors Profit Opportunities for Investors and Traders Alike

  • Dogecoin (DOGE-USD) is a legitimate asset delivering serious profits
  • Trading it brings short term opportunities
  • Investing in it brings long term success
Concept art for Dogecoin (DOGE).
Source: Shutterstock

While cryptocurrency is a new asset on Wall Street, its component charts still work the same as regular equities. This is a fortunate thing for us who use chart technicals to get an edge while investing in it. Longer term, the fact is that Dogecoin (DOGE-USD) has brought tremendous profits for its investors. This is likely to continue for a long time forward. Meanwhile, there will also be many shorter term fortunes for more active traders.

But before we discuss the upside profit potential, we must first touch on the crypto concept in general. It’s hard for retail investors to get clear guidance from the outside. The crypto rhetoric from experts is too optimistic. Conversely the criticism is way too broad in scope and binary. Celebrity haters carry clout and their influence is doing long term damage to those who listen.

When it comes down to it, Dogecoin has been returning big profits for its investors. In other words, this is not a joke, folks and those who ignore it are missing out on serious profits. The concept of crypto is here to stay, so people should get over their skepticism. I remember staunch holdouts over the “information super highway” when it first started. Now everyone’s on it and we don’t even think twice about using all of its facets.

DOGE-USD Dogecoin $0.14

Dogecoin Is Serving a Greater Purpose

Asset opportunities like the one in DOGE-USD are setting the stage for the global financial future. Every aspect of our lives is going digital, so money will not be the exception. Regardless of which currencies we settle on, Doge is helping setting the baselines for them. The technologies that are coming up now for them are forming fintech. This is an extremely popular investment trend and for good reason.

The concept has evolved tremendously since intrepid companies like Visa (NYSE:V) and MasterCard (NYSE:MA) established it. Now younger teams, like Block (NYSE:SQ) and Affirm (NASDAQ:AFRM), have picked up the torch for the next leg of the race. There should be no doubt over the viability of Dogecoin as an investment asset.

Just like all other meme topics, DOGE-USD rallied too far and too fast last year. It exploded over 9,000%, but by May the crash had already started. At its lows this year, Dogecoin had lost 35% of its value. The important thing, is that it bounced off pivotal zones from last year’s breakout. There was a big fight between the bulls and the bears over the 10 cent mark. Bouncing off it gives the Dogecoin bulls confidence that they have a floor below. From that they have built up a 60% rally to challenge the 20 cent level. If they can make new highs this month, it can even recover November’s levels.

But the more exciting part about this is longer term. Investors would do well accumulating it on large dips one bit at a time. That has been a winning strategy for decades for assets like gold and now cryptocurrency. It’s hard to pinpoint perfect entry points, so we should spread them across what we think are reasonable levels.

Bitcoin Matters

Dogecoin (DOGE-USD) Chart Showing Potential Upside
Click to Enlarge
Source: Charts by TradingView

For the time being, there are buyers as it approaches 10 cents and sellers near 30 cents. Active traders can swing trade the range for profits. But overall, Bitcoin (BTC-USD) is still the chief coin in charge. Therefore its price action affects all others, even Doge. BTC-USD is in a fight of its own trying to convincingly recover and hold $46,000. For a brief moment last month it did so but gave up the ghost. The risk is that there could be another large drop in all crypto if Bitcoin loses the January low.

Therefore investors would do well to not deploy all funds at once. Leaving some powder dry to buy more dips makes for a sane strategy. I am not concerned over the potential correction in crypto because I technically expected it. In fact I argue that Bitcoin needs to retest its $20,000 neckline that fueled the 2020 mega rally. Even when that happens, it would be part of normal price action in an abnormal spike. Stock prices and crypto cannot break the laws of physics for too long. Sporadically they have to come back and shed froth that creeps into them. That’s the only way to build better bases for future profits in Dogecoin and others like it.

On the date of publication, Nicolas Chahine did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Nicolas Chahine is the managing director of SellSpreads.com.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/dogecoin-harbors-profit-opportunities-for-investors-and-traders-alike/.

©2022 InvestorPlace Media, LLC