It has been a slow week for crypto, with prices barely moving. On top of these low volumes, there is also the risk that Bitcoin (BTC) could test new lows. That’s because, every time Bitcoin (BTC) struggles to break a resistance level for long, it is often followed by a dump. In the current setup, Bitcoin has been struggling to push key resistance at $4163 for more than a month now. Narrowing down into the intra-day charts, Bitcoin (BTC) has failed to break key support at $3677 and has struggled to push back above it for 48-hours. If past patterns are anything to go by, then this could be followed by a dump that pushes Bitcoin (BTC) to $3000 or even lower.
Under these circumstances, holding stable coins make the most sense. The only problem with stable coins is that, in case of a sudden upside breakout, you would be left chasing the price, when reentering the market. That’s why a low risk entry into cryptos with a history of stability makes a lot of sense. One coin that has such a history is Dogecoin (DOGE).
While Dogecoin (DOGE) moves up and down with Bitcoin (BTC) it is way more stable than the other altcoins. Dogecoin (DOGE) rarely pumps or dumps randomly. This means that even if Bitcoin (BTC) were to dump suddenly, you are unlikely to suffer any major losses from holding Dogecoin (DOGE), when compared to the other altcoins. In essence, you are safe going down, and you are also safe going up. That’s because, in case of a sudden Bitcoin (BTC) pump that pushes it above $4200 and possibly gains momentum to $5k, all altcoins would most likely pump as well. This means that as a Dogecoin (DOGE) holder, you would benefit, just like everyone holding all the other altcoins.
Besides, by holding Dogecoin (DOGE), you have the comfort of knowing that you are not holding a shit coin that can disappear from the market at any moment. That’s because, Dogecoin (DOGE) is not just used for speculative trading on exchanges. There is an actual real world use to Dogecoin (DOGE). It ranks alongside Bitcoin (BTC) and Ethereum (ETH) in terms of real world adoption. This not only assures you of price stability, but also of the fact that Dogecoin (DOGE) will be there, no matter how long the crypto bear lasts. This is important because as the crypto bear continues to hit hard, cryptos that are fundamentally weak, will start to run out of money and die off. This is already starting to happen, and if this bear run goes for another year, then many altcoins will die off.
In essence, Dogecoin (DOGE) may come across as a joke coin at first, but it is a smart investment in this market. It is the investment that can help you possibly survive the bear market unscathed. In fact, compared to other altcoins, Dogecoin (DOGE) has been a pretty safe for the last 52-weeks, and is likely to get better with time due to its growing usage.