Dogecoin has experienced an unprecedented surge and plunge this year, causing huge market fluctuations. Veteran traders have warned that Dogecoin may be destined to return to zero. Let's delve into the inside story behind this incident and see what caused this amazing market fluctuation.

As a cryptocurrency, Dogecoin was originally a digital asset born as a joke, and its iconic "dog" image has won the love of many netizens. However, this year, the price of Dogecoin has experienced a 180-degree reversal, from a surge of 160 times to a plunge. The market was turbulent for a while, and investors were caught off guard.

The bearish predictions of veteran traders are not unfounded. They pointed out that the surge in Dogecoin was actually due to a crazy speculative craze rather than fundamental support. Similar to the "crazy guessing word" game, investors joined the carnival in the hope of profiting from it. However, once the price of Dogecoin fell back, speculators chose to sell, causing the price to fall sharply.

Bubbles and crazy speculation are not uncommon in the digital currency market. Similar to cryptocurrencies such as Bitcoin, the price fluctuations of Dogecoin are also affected by market sentiment and speculation. When the market is in a frenzy, investors are often easily swayed by emotions and blindly chase ups and downs. This speculative behavior often exacerbates price fluctuations and eventually leads to a crash.

The crash of Dogecoin this time also sounded the alarm for investors. In the digital currency market, investment should be cautious and never blindly follow the trend. Senior traders suggest that investors should look at investment rationally, not be swayed by short-term market conditions, and consider investment strategies from a long-term perspective. Steady investment is the long-term solution.

In general, the surge and plunge of Dogecoin this year has taught us a profound market lesson. Investment is not a game that can be achieved overnight. It requires careful selection and rational investment to remain undefeated in the tide of the market. I hope that investors can learn lessons from this incident, become more mature investors, and grasp their own wealth destiny. Let us look forward to the future of the digital currency market together, and believe that rational investment will usher in more stable development.

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Since April 2, 2019, when Musk claimed that Dogecoin (DOGE), the ancestor of meme coins, was his favorite cryptocurrency, the two have been inseparable.

According to Trading
View data, Dogecoin began to grow from $0.002026 at the time, and hit a historical high of 0.7534 in May this year, growing more than 370 times, and about 163 times from $0.004595 at the beginning of the year.

As of press time, Dogecoin was quoted at $0.2485, down 0.6% in 24 hours, and still up 52 times since the beginning of the year, but it has fallen 67% compared to the historical record, and now ranks sixth in market value at $32.4 billion.

Is Ma Investment Consulting broken? 

Although the substantial growth this year has been driven by Musk, including the various dog meme pictures he posted and the news that he has been working with the DOGE development team since 2019, the price of the currency has repeatedly soared.

However, Musk's magic of shouting orders for Dogecoin seems to have failed recently.

On the 2nd of this month, Virgin Galactic announced that it would conduct a passenger space flight test on the 11th. Founder Richard
Branson and Jeff Bezos, CEO of Amazon, the world's leading e-commerce company, would take the flight one after another. As a result, Musk left a message asking, "Can I pay with Dogecoin?"

Brother Musk said that he loves dogs, but it was not reflected in the price of the currency. After Musk spoke, Dogecoin fell 3.3% from $0.2466 to $0.2385 in three hours.

Analyst: Dogecoin may return to zero

Not only did Musk's online shouting orders fail, but several traders were not optimistic about the subsequent performance of Dogecoin.

On the 18th of last month, Tyler Durden, an anonymous cryptocurrency trader with 58,000 followers on Twitter, shared a head and shoulders top pattern, believing that Dogecoin has passed its high point and will probably plummet afterwards: "Even Musk can't save the situation with his tweets. He tried, but every time he wrote another lower high point. It is destined to reach $0.05." In addition, Seeking Alpha also published a sharply worded report on June 6, in which the author The Asian Investor criticized Dogecoin for having no practical value at all, nor for being a store of value, and will die slowly and painfully next. "Dogecoin's market value is greater than Walgreens (WBA), which has more than 4,000 drugstores, or Dollar General (DG), which has more than 16,000 stores selling actual goods... But there is no practical application, which is why Dogecoin is destined to fall back to $0. Although Dogecoin has jokes and entertainment value on social media, it has no economic value at all. Dogecoin is expected to move towards $0 this year and die slowly."