While the bulk of the cryptocurrency sector is back in sideways trading mode, Dogecoin (DOGE) is keeping up with the trend, and data shows that investing $100 per week using the dollar-cost averaging (DCA) strategy It will not be possible to do. This year has been profitable for this digital asset.
As it happens, DCA is a popular investment method that deploys purchasing by spreading out purchases and equal amounts of money over specific intervals, often used by investors who want to avoid the negative aspects of other investment strategies that Much depends on proper timing of the market, watching prices, and analyzing chart patterns.
DCA-ing Doge
Unfortunately, this strategy is not always ideal, as the market can go through long periods of bullishness and high prices while having relatively short bearish periods when the asset is cheap, which fails to protect the investor from losses, as That is clear in the case of Dogecoin.
Specifically, purchasing $100 worth of DOGE at approximately the same time each week after January 1, 2023, meaning investing a total of $3,900 over a 39-week period, would currently be worth $3,233.14, or invested The amount will be reduced by 17.10%, as per cryptodca Data of 27 September.
Historical DCA performance of buying DOGE weekly at $100. Source: cryptodca
dogecoin price analysis
As things stand, Dogecoin is changing hands at a price of $0.0611 at press time, registering an increase of 0.59% on the day, although still maintaining a loss of 1.65% over the past week and a decline of 2.01% over the past month. She has come. Recent charts indicate.
Dogecoin 30-day price chart. Source: finbold
Factors that could help increase Dogecoin’s price and make the DCA strategy profitable, he said, include positive developments related to its ecosystem, as well as relevant public speaking from its biggest fan – Tesla (NASDAQ: TSLA) CEO Elon Musk. Contains statements and actions. ,
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. Your capital is at risk when investing.
Source: finbold.com
