Dogecoin 'Keeps Bleeding' But Risk/Reward Ratio Now Favorable, Trader States

Dogecoin's DOGE/USD poor performance compared to other meme coins continues to be cause for debate among traders.

What Happened: Pseudonymous trader Anbessa, who by his own account accurately predicted DOGE’s 8,000% rally in the past, is now signaling a shift in the meme coin landscape. “We’re in a meme bull market without DOGE,” the trader states, emphasizing the importance of adapting to new market conditions.

Despite the current focus on newer meme coins, the trader reveals a strategic move: “I’ve recently started accumulating DOGE.” This decision is based on speculation that the “dino” coin might rally towards the end of the current meme cycle. The trader views this as a calculated risk, citing a favorable risk/reward ratio.

Anbessa tempers expectations, noting that even if DOGE reaches $1, it would be “a nice tenbagger, but it’s not the same generational wealth setup.” This realistic outlook contrasts sharply with the euphoria of past DOGE rallies, particularly the one in 2020 which Adapt refers to as “the real opportunity.”

Another veteran trader Sherpa predicts Dogecoin to keep bleeding until $0.08.

Pains me to say it but $DOGE probably keeps bleeding until the .08s. I still think this is probably a decent one for this cycle for passive investors but eh pic.twitter.com/9uDMLRmrGk

— Altcoin Sherpa (@AltcoinSherpa) August 28, 2024

Also Read: Dogecoin Forming A Bottom, Poised For Bull Run Starting Early September, Trader Says

Price Action: Dogecoin is up 1.8% on the day but down almost 20% in the past 30 days.

Large transaction volume has increased by 2% in the past 24 hours and transactions greater than $100,000 have increased $1.2 billion over the past seven days, according to IntoTheBlock data.

Dogecoin has performed similarly to other meme coin like PEPE, which is down 30% over the past month.

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