Dogecoin's 35% Monthly Gains And 'Elon Musk Effect' Means It's 'Probably Going To Do Something Silly Like Go To $1,' Says Trader

Pseudonymous cryptocurrency trader Altcoin Sherpa sees Dogecoin DOGE/USD as a “good one to buy and hold for a while” despite a dip in cryptocurrency prices.

What Happened: The heavily-followed trader published his analysis on X, listing the pros and cons of trading the meme coin.

Pros:

• Traders can “size up” as it is a safer trade given Dogecoin’s liquidity.
• The “Elon Musk effect” can send the token up more than 25%.
• It is “probably going to do something silly” like eventually go to $1 this cycle.

Cons:

• Gains are unlikely to be as high as last cycle due to its valuation.
• Other memes have more potential room to grow.

His conclusion is it is a "good one just to buy and hold for a while" and not a great active trading vehicle, but Altcoin Sherpa sees prices trading up to the high $0.20s -$0.30s before any pullback.

It consolidated for many months, which leads the trader to believe that “you can actually hodl this and sell it after a few x later this year."

Read Also:  Dogecoin Mirrors 2018-2021 Patterns: Crypto Analyst Says ‘DOGE Could Be At The Very Beginning Of A Massive Parabolic Bull Run’

Why It Matters: Dogecoin has risen on the cryptocurrency board to the eighth spot, with monthly gains at 30% and yearly gains at 125%. It has still maintained its top position on the meme coin board, with the highest valuation of $26.1 billion and past 24-hour trading volume of $3.9 billion.  

IntoTheBlock data highlights a surge of 90% in large transactions volume to $4.9 billion, while daily active addresses increased 37.7% to 92,410. Also, transactions greater than $100,000 saw a surge to 1,129 as of April 1 compared to 793 transactions as of March 31.

Total exchange inflows multiplied more than five times to $753.3 million as of April 1 from March 31.

However, over the past 24 hours, Dogecoin has corrected alongside the entire cryptocurrency market and is down 10% at the time of writing. Whether that means the end of the trader’s identified uptrend remains to be seen.

What’s Next: In another tweet, Sherpa forecasts a 3x for Dogecoin,

$DOGE: This is still a great long term investment to be honest. And by long term, I mean like 6 months+. It's going to do something insane this cycle and still should be at least a 3x+ from here (possibly more). It accumulated for 700 days, still is the banner meme for all of… pic.twitter.com/hpA2h7CdKb

— Altcoin Sherpa (@AltcoinSherpa) March 28, 2024

The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Dogecoin Spikes 15% Ahead Of Doge Day, As Whale Transactions Surge

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