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It’s Doge Day, But Dogecoin Is Sinking… Now What?

What Happened to the Dogecoin Price Today?

A concept image of Dogecoin (DOGE) with the Shiba Inu and text on a gold token.

Source: Shutterstock

  • The explosive cryptocurrency Dogecoin (CCC:DOGE) saw its price plunge more than 10% on 4/20, a day when many expected the crypto to rise in value.
  • That’s because today is Doge Day — a “holiday” created by Dogecoin investors to try and push the price of Dogecoin up to $1.
  • Perhaps not coincidentally, Doge Day’s 4/20 date happens to be the national holiday for marijuana fans.

Why DOGE Is Down

  • This could be a “buy the rumor, sell the news” event.
  • Traders — bolstered by celebrity and company endorsements — have been pushing up Dogecoin in anticipation of Doge Day.
  • Now that it’s here, traders are selling and taking profits on a name that has soared more than 40X in a matter of months.

Does It Matter?

  • “Buy the rumor, sell the news” events happen all the time. This is not a unique occurrence to Dogecoin. Many times, “buy the rumor, sell the news” events actually turn into great buying opportunities.
  • That may not be the case with Dogecoin …
  • The fundamental value underlying Dogecoin is questionable, as there is nothing technologically unique about Dogecoin that makes it superior to any of the other 4,000-plus cryptocurrencies in the market.
  • Instead, the Dogecoin price has been driven almost entirely by momentum, hype, and sentiment.
  • A “sell the news” event could be the straw that breaks the camel’s back, and causes Dogecoin prices to come under pressure as opposed to continuing on their exponential growth trajectory.

Dogecoin Price Forecast

  • I’m a huge fan of cryptocurrencies. They represent the future of a decentralized world that does not require central arbiters to create trustworthy systems.
  • But the internet also represented the future back in 2000, and yet, there is a graveyard full of red-hot internet startups from the late 1990s that were bankrupt by 2003.
  • Almost all of the rewards of the “internet revolution” were horded by a few tech titans, like Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and Alphabet (NASDAQ:GOOG).
  • The same thing will happen in the crypto market. Cryptos will redefine the world over the next 10 to 20 years. But the majority of the rewards of the “cryptocurrency revolution” will be horded by a few crypto titans, like Bitcoin, Ethereum, and a few others.
  • Dogecoin will likely not be one of those cryptos with long-term staying power.

Investors are right to be excited about cryptocurrencies. They represent the future of the world.

But don’t be fooled by the hype.

Don’t buy into every trendy cryptocurrency and think that it’s going to turn into the next big thing. Learn from history!

Plenty of folks bought every trendy internet startup back in 1999 — like, Webvan, and Napster — and ended up losing all of their money … despite their intuition being right that the internet would takeover the world.

And with 4,000-plus altcoins trading hands on sites like Coinbase (NASDAQ:COIN) and Robinhood, we’re approach the 5,000 or so internet stocks at the peak of the dot-com bubble … just before it went kaput.

Today, only a handful of dot-com bubble stocks climbed from the wreckage. But they went on to score massive gains — just look at Amazon (NASDAQ:AMZN).

In other words, to be a successful crypto investor, you must be selective.

Luckily, we can do that for you.

In our exclusive research platform — The Daily 10X Stock Report, where we highlight a potential 10X stock pick every single trading day — we also highlight our favorite cryptocurrencies that we feel are the cream of the crop in this overcrowded, yet very promising, industry.

Click here to gain access to that service, and find out the best cryptocurrencies to buy today.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.

Article printed from InvestorPlace Media,

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