Since the start of the year, Dogecoin has been hovering around $0.002. This is quite different from most cryptos that have been experiencing random pumps and dumps within the same period. For a day trader, this makes Dogecoin (DOGE) a boring crypto to look at in the short-term. However, this stability is also what makes Dogecoin (DOGE) a good hold this quarter. That’s because it has a lower risk of losing a huge chunk of its value in case prices collapse again.
Looking at Bitcoin (BTC) price action in 2018, every time it held along a support/resistance level for long, it always dumped unexpectedly. For instance, before its price dropped to $3100, it had traded along the $6000 price level for weeks. This level was offering key support at the time, but once it broke, Bitcoin went on a downward spiral and hit $3k.
This drop saw a catastrophic drop in the value of most altcoins within a very short-time. A similar pattern is forming, at the moment. Bitcoin (BTC) has been trading along the $4k resistance level for some weeks now. This could mean that there isn’t enough buying volumes to push the price higher. As such, the risk remains that it could collapse back to its 2018 lows or even lower. In such a situation, you don’t want to be caught up in volatile altcoins. You would do better in Bitcoin (BTC), Stable coins, or in low volatility altcoins like Dogecoin (DOGE).
But that is the worst case scenario. Even in a scenario where the market remains as it is, Dogecoin (DOGE) still makes for a high value buy in 2019. That’s because, part of what will drive crypto value going forward is adoption. It is not practical for merchants to adopt highly volatile cryptos for everyday payments. It’s just doesn’t make business sense. No merchant would adopt a cryptocurrency that can lose 20% of its value in less than 24-hours. This means that Dogecoin (DOGE), which is quite stable, is better positioned for adoption than most other altcoins.
The fact that over 95% of Dogecoin’s transactions come from merchant use is not a fluke. It is an indicator that it is a practical crypto for business purposes. Based on this stability and a high potential for adoption, Dogecoin (DOGE) is likely to give a higher level of value growth as compared to other altcoins in 2019. It may not be extreme growth that is always followed by a dump but a slow and stable growth, which retains value even in a bear market.
With such prospects, Dogecoin (DOGE) makes for a good buy, not just in Q1 of 2019 but for months to come. If the market continues with the trend that plays out in 2018, then Dogecoin (DOGE) would retain the most value this year. And if the market turns bullish, then it could be among the biggest gainers too. It would be backed by both hype and usage.