Dogecoin Surges 22%... Should I Get In Now?

▲ Dogecoin / Source: Twitter account @DogecoinRise ©CoinReaders

Dogecoin has surged by 22%, seizing market leadership, but at the same time, high volatility risk is once again coming to the fore.

According to the cryptocurrency media outlet Watcher.Guru on May 4 (local time), Dogecoin (DOGE) has recently recovered the $0.11 level and is continuing its upward trend. Based on CoinGecko data, it has shown a strong rebound, rising 3.9% in 24 hours, 11.8% in 7 days, 18.1% in 14 days, and 22.5% over the past month.

This rise was largely influenced by the overall market rally. On the same day, Bitcoin (BTC) re-surpassed $80,000, which expanded risk asset preference, and DOGE also increased its gains in correlation with this. The high correlation between the two assets was reconfirmed in this trend.

Whale movements also supported the rise. According to Santiment data, over 730 transactions exceeding $100,000 occurred in a single day, marking a 6-month high. Additionally, wallets holding at least 100 million DOGE collectively hold 108.52 billion DOGE, amounting to approximately $11.6 billion.

However, the risks are also clear. Dogecoin, as a representative memecoin, is much more volatile than Bitcoin or Ethereum. Its price has repeatedly surged and plummeted, heavily influenced by external factors such as Elon Musk's statements, and there is a high possibility of a sudden change in direction in the short term.

Uncertainty also exists on the regulatory front. US financial authorities classify memecoins as 'digital collectibles,' making it difficult to expect stable returns like traditional assets. The analysis suggests that market participants should be aware that high profit potential coexists with significant risk of loss.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*