Dogecoin (DOGE-USD) is now the 10th largest cryptocurrency, according to Coinmarketcap. Its market capitalization (cap) is a little under $9 billion. In the last month, Dogecoin has taken a big hit. But that could provide an opportunity for investors.

The crypto has fallen over 60% year-to-date (YTD) to below 7 cents as of July 4. In the last month alone, it’s down over 16.4%. This has turned into a rout. Other cryptos are also down significantly.

For example, Ethereum (ETH-USD), the second-largest crypto with a market cap of $136.2 billion, according to Coinmarketcap, is down over 70% YTD. And Cardano (ADA-USD) is down over 66.6% YTD and 17.8% in the past month. It is the eighth largest crypto in terms of market cap.

So, interestingly, Dogecoin has actually performed slightly better than some of its larger peers. But that is not saying much, as all these top 10 cryptos are down significantly for the year.

Moreover, Coinbase Global (NASDAQ:COIN), the largest crypto exchange, has now lost almost 80.5% of its value in the last six months ending June 30. It ended last year at $252.37 and by June 30, it was down to $49.04 per share.

Reaching an Inflection Point

This may not be the end of indiscriminate selling. Investors should be aware that the continued interest rate hikes by the Federal Reserve (Fed) are designed to take liquidity out of the system. This will not be good for the crypto market going forward.

However, once the Fed has reached the point where it is done raising rates or slowing down its rate hikes, the market will rebound in a hurry. At that point, it may be that the cryptos will move 10% to 20% in a day.

So, if this is what could happen, that means that Dogecoin and other cryptos could reach an inflection point very quickly. The best way for investors to handle this is to acquire shares over a period of time. That means using dollar-cost averaging. This entails buying shares before the crypto price has reached a trough and buying shares after a trough.

One bright spot for Dogecoin is that Elon Musk recently told a forum in Qatar that he still supports it. What that means on a practical level is doubtful though, since he has not said if he is helping to support the Dogecoin Foundation or the developers behind Dogecoin.

Where This Leaves Investors in Dogecoin

At this point, investors who own Dogecoin have seen such a depreciation in their investment that it makes sense to add a little more. This will significantly reduce the average cost of the overall investment.

Investors who have not yet taken a position can use a dollar-cost averaging program over time to buy in now before the inflection point hits. This ensures a method of buying in cheaply. Dogecoin might continue to move lower, but if not, the investor can pick up Dogecoin tokens near the trough. This is assuming that it is not actually at the bottom now.

If Elon Musk actually starts supporting the currency’s development other than just with his words, then Dogecoin can have a chance of moving significantly higher.

On the date of publication, Mark Hake 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.