Does Dogecoin still have a chance? Let's uncover the three key factors behind its previous surge!
First, the overall market performance is good, which has driven the rise of Dogecoin (DOGE).
Second, a public statement from Musk, along with the establishment of his D.O.G.E department, directly triggered the surge of DOGE.
Third, the market has cycles, with several waves of enthusiasm related to Shiba Inu and meme coins occurring every year, the last wave of enthusiasm was in March.
However, the current situation is different. Now, the overall market is on a downward trend, with Bitcoin and other altcoins also falling, making the first driving factor no longer valid. Although Musk has made statements recently, the market's reaction has already been digested, and many investors have not yet cut their losses, the bubble is still being digested. In the short term, it will be difficult for Musk to make another statement, so the second driving factor is also no longer applicable.
As for cyclicality, the current market is generally declining, and the rotation between sectors has completely disappeared, all are in a downward rotation. Therefore, I personally believe that it will be quite challenging for Dogecoin to return to levels above 0.4 in the short term. Although the market may experience a rebound, it is unrealistic to expect a quick recovery.
My suggestion is to consider reallocating, shifting towards leading coins in other sectors, looking for those that have not yet surged significantly and are in the bottom region. Especially those projects that have star effects and are receiving attention from big names in the same sector.
