DOGE is the coin of the moment.

It's doing well, everybody is talking about it, it's climbing strongly against both BTC and fiat.

Time to GET OUT OF DOGE!

From https://dogecoin.com , modified by Bit Brain

Get out of DOGE

DOGE is all the rage at the moment. It's the coin of the moment and the word on all crypto lips. In the eyes of many crypto enthusiasts, DOGE can do no wrong. *Groan*, here we go again with the next coin...

Of course this is what happens with every popular crypto while it enjoys its 15 minutes of fame (which it usually does on several different occasions in a cyclic fashion). What's the matter market? Have you finally grown tired of previous coin-of-the-moment EOS? My message today is one of caution: If I were a DOGE holder right now (and I am not), I would be looking to get out of DOGE.

Why?

I have always had a bit of an issue with Dogecoin. The mere fact that it was started as a joke (literally) does not sit well with me. Sure, I will be the first to admit that it has done rather well for itself, it genuinely has, but why is that?

DOGE was one of the earliest cryptos. I believe that this led to it gaining a sizeable first mover advantage in its market sector. The market sector in which DOGE made its home is the social media tipping sector. Of course DOGE is used elsewhere too, and here is where it has another advantage: as an early coin, it is found on all the old exchanges and on many of the new ones too. It's also supported by many multi-coin wallets. This makes DOGE easy to trade and move.

But is this enough?

I'm sorry Bit Brainians, I am fully aware that the major ingredient of the recipe for success is "right time at the right place", but just how far can such a "business strategy" be expected to carry DOGE? You look at a coin like NEO with its meticulously planned Smart Economy, and then you look at DOGE with its thrown together joke. Which one do you expect to survive? Which one has a proper team with the knowledge, business plan and drive to take the coin forward successfully? I simply can't see a future for a coin which has so far, in my opinion, got to where it now is mostly by luck.

But the price of DOGE is rising. I attribute this mostly to the normal over-reaction that often occurs in the crypto world. In this case I think that it is driven chiefly by the news of Dogethereum - something which I find rather underwhelming and ultimately unnecessary. At this stage it may sound to you like I'm anti-DOGE, which is not the case. I just consider DOGE to be valued above what I think it should be and flying above its station. If DOGE were regarded more along the lines of something like Reddcoin, then I would be inclined to consider it as being at fair value. But when I see DOGE flying past a well worked out privacy coin like ZCash, then all sorts of alarm bells go off in my head and I become compelled to write a post like this one.

I would be selling right around now...

I consider the current price of DOGE vs BTC to be unsustainable. On one hand this is a good sign: I think that the fact that a coin like DOGE can do so well vs coins which I think are far better than it, signifies just how new and inexperienced the entire crypto market still is. This is great because it means that there is still truly massive room for growth in this market, but as the market matures I would expect coins like DOGE to slide slowly downwards again.

Right now DOGE is valued rather high. The pattern that DOGE follows is to gain and lose value in fairly short duration "hype spikes". It is my belief that DOGE is nearing the high of such a spike right now. Based on common sense alone, you should be able to see why I am now recommending a "sell" of DOGE. This doesn't mean that the coin is necessarily bad or has no future; just that I think price is about to drop rather radically. At the very least I would consider setting a few stop-losses and keeping a very close eye on the price of DOGE. If it were me I would probably just sell off about 75% of my DOGE this week. Of course I may be wrong, but my standard crypto philosophy is "rather a bit early then too late".

But don't take my word for it, take a look at the DOGE charts and tell me that this price climb is not about to reverse:

Log view:
From https://coinmarketcap.com/currencies/dogecoin/

Linear view:
From https://coinmarketcap.com/currencies/dogecoin/

Conclusion

I would really do a little DYOR if I was a DOGE holder and I would consider selling very soon, probably this week still. You can always rebuy when prices drop again. While DOGE may still climb a bit more (and probably will), I do not believe that the current level will hold and it will be hard to predict where it will turn. (Stop loss, stop loss, stop loss!)

Yours in crypto,
Bit Brain

Bit Brain recommends:

Crypto Exchanges:

---

Published on

by Bit Brain

---