The market performance of Dogecoin ($DOGE ) has attracted a lot of attention recently, and its price seems to have opened the door to a new altcoin season after experiencing a significant increase. This price increase is seen by many as a short squeeze event, where short sellers in the market are forced to liquidate their positions, thereby driving further price increases.

Dogecoin’s rise is reminiscent of the last price spike triggered by Tesla’s announcement that it would accept Dogecoin as a payment method. Despite the subsequent price pullback, many investors remain optimistic about Dogecoin’s future potential and believe in its ability to reach new price highs. This belief is partly based on the activity and celebrity of the Dogecoin community, especially the support of Dogecoin from public figures like Elon Musk.

However, it is important for investors to recognize the volatility of the cryptocurrency market and take this into account in their investment decisions. Chasing prices when prices rise is not a wise strategy. On the contrary, investors should look for buying opportunities when the market falls and follow the principle of "I am greedy when others are fearful, and I am fearful when others are greedy". In addition, avoiding full positions is also the key to reducing risk, because the market is always full of opportunities, and full positions may increase opportunity costs.

Investors should pay close attention to market dynamics and adjust their trading strategies in a timely manner according to market conditions. Remember, short-term trading requires quick and accurate decisions, so it is very important to clarify your trading strategy, pay attention to market trends, control risks, and adjust trading strategies in a timely manner. At the same time, all transactions should be conducted within the range of one's own psychological tolerance to avoid excessive psychological pressure caused by market fluctuations.