Recently, DOGE coin has become the market focus as its price rose to $0.42, with investors afraid of missing the peak while also wanting to explore market trends. The following analysis covers its current performance and future direction from several perspectives:
1. Musk's Influence: His naming of the department 'DOGE' triggered a price frenzy, showcasing his influence. However, the hostility from the Trump team, along with layoffs and reform actions, may complicate the external market environment.
2. Spot Selling Pressure: On-chain data shows that 65% of DOGE's spot orders are sell orders, indicating significant selling and arbitrage activity. Continuous selling pressure may increase the risk of price correction.
3. Impact of Starlink Events: The Starlink launch did not push prices to new highs; instead, it dampened market sentiment, reflecting a fading celebrity effect among investors. Similar events are unlikely to significantly affect prices in the short term.
4. Investor Divergence: One side believes that selling pressures place DOGE at high risk, making blind operations inadvisable; the other side feels that Musk can still drive prices higher, indicating market sensitivity to uncertainty.
5. Investment Advice: For the short term, set profit-taking and stop-loss orders, with profit-taking at $0.42 and stop-loss at $0.35; closely monitor external dynamics; for the long term, gradually reduce positions to lock in profits while keeping positions for potential upward opportunities.
Summary: The situation of DOGE coin presents both opportunities and risks. Amid uncertainty, investors need to remain calm, manage risks, and adjust strategies flexibly to cope with volatility. $ETH $SOL $BNB