Preparing for a Dogecoin Bull-Run: When to Sell Dogecoin

Have you ever had that moment when everything just clicked? I remember one clear morning when Dogecoin price skyrocketed uncontrollably. It was during the unforgettable May 2021 bull run, when the price of DOGE surged from $0.004 to $0.73 in just 4 months. 

The hype of this price increase was noise everywhere, but instead of rushing in, I took a step back, made a calculated move. That decision led to solid profit and strengthened my conviction in strategic trading. 

Like other crypto markets, Dogecoin has a potential bull run. In this guide, I’m bringing my hands-on experience and practical strategies as we examine the factors that influence a Dogecoin bull run and give tips to help you decide when and how to trade during one.

Understanding the Dogecoin Ecosystem

Dogecoin is not like the others. While other cryptocurrencies aim to be scarce and limited, Dogecoin does its thing differently. It uses an inflation model, which allows for the supply of the coin for a controlled period and will change according to inflation trends. Its ecosystem is also hinged on two things:

• Utility: DOGE is being widely accepted as a payment method by some merchants.
• Community: Dogecoin is meme-driven by a community that influences its price through social media and celebrity endorsements, particularly by Elon Musk.

Factors that indicate a bull run

Predicting a cryptocurrency’s price trend is not easy. However, here are some things that can help you recognise when Dogecoin is about to enter a bullish season:

1. Market Sentiment

When the crypto market is doing well, it favours many coins, not just one. For instance, a massive gain with major cryptocurrencies like Bitcoin and Ethereum positively influences the price of other cryptocurrencies. This also makes investors more confident about putting their money into other coins, which can help raise Dogecoin’s price. It’s much like a wave that starts strong at the front and carries everything.

2. Increased Buying Volume

One of the first signs of a bull run is a rapid increase in trading volume, which is influenced by an increased demand for Dogecoin purchases. This demand results from traders buying more Dogecoin than they sell, causing an increase in Dogecoin’s price, attracting new investors. If trading volume continues to rise alongside price action, this suggests strong market confidence. However, once volume drops while the price remains high, it may signal that the rally is losing steam.

3. Social Media Buzz

Dogecoin thrives on social media hype. Positive sentiment and trending Dogecoin hashtags can encourage buying, and its price will increase.  For instance, Elon Musk’s tweets have had a massive impact on Dogecoin’s price. The price can increase whenever he tweets his support for the meme coin.

While this excitement can fuel price increases, it sometimes leads to exaggerated valuations. If the hype becomes excessive, consider selling before a pullback occurs.

4. Developments in the Dogecoin Ecosystem: 

Merchants have started adopting Dogecoin by working with popular payment platforms, and upgrades to the Dogecoin network could all lead to a bull run. 

Things To Keep In  Mind When Selling Dogecoin During A Bull Run

1. Target Price:

Setting a target price is a key part of a smart selling strategy. Think of it as your checkpoint, the price you’re ready to sell and lock in your gains. You might determine this number by reviewing past sale prices or deciding on the profit you aim to secure. When the market reaches your target, you’ll know it’s the right moment to act.

2. Profit Percentage: 

Think of it as setting a clear goal before you dive in. You decide on a profit percentage that makes you comfortable—this is your target. For instance, imagine you bought a coin at $0.20. If the price reaches $0.40, you’ve doubled your investment with a 100% gain. At that point, you might decide it’s the right moment to sell some or all of your coins. This approach helps you stick to a plan and avoid getting swept up in sudden market changes.

3. Trailing Stop-Loss: 

Create a trailing stop-loss order that automatically sells your coin if the price falls below a certain percentage. This way, your profits are protected while you enjoy the bull run if it continues.

4. Time-Based: 

Sometimes, it’s less about the price and more about the time you’ve set for your investment. If you’ve decided on a specific timeframe for holding your Dogecoin, stick to it. Immediately, as time approaches, ensure you sell, no matter what the price is at that moment. This strategy helps keep your mind at rest and ensures you don’t hold on too long if your original plan was to exit at a certain point.

5. Your Risk Tolerance: 

Dogecoin is a fragile asset, and if you’re not that risky, it might be wise to sell your coins earlier in a bull run to secure profits.

When to Sell Dogecoin for Profit

Selling at the right time requires balancing maximising profits and avoiding potential losses. Here are key indicators to watch out for when you want to sell your Dogecoin.

1. Gradual Selling at Key Levels

Instead of selling all holdings at once, consider selling Dogecoin in stages. This strategy reduces the risk of mistiming the market. For example, selling 25 to 50 per cent of holdings secures profits if Dogecoin reaches a significant resistance level. If the price rises, the remaining holdings benefit from further gains. If it starts declining, some profits will already be locked in.

2. Exit on Parabolic Price Movements

A parabolic price movement happens when Dogecoin increases rapidly without pullbacks. While this can seem like a good sign, such movements are often unsustainable.

If the price rises too quickly in a short period, it may be best to sell at least a portion before a sharp correction occurs.

3. Sell When Market Sentiment Becomes Irrational

Extreme optimism usually signals the peak of a bull run. If mainstream media, influencers, and new investors are all talking about Dogecoin, the hype may be near its peak.

History shows that buying pressure weakens when everyone is bullish. Taking profits before the crowd starts selling prevents losses when the market reverses.

4. Monitor Bitcoin’s Performance

The price of Bitcoin often affects Dogecoin’s price movements. A decrease in Bitcoin’s price usually causes a decline in the price of Dogecoin.

One way to obtain insight into a broader market trend is to monitor Bitcoin’s support and resistance levels. If Bitcoin struggles, it can be wise to take profits on Dogecoin before a downturn.

Frequently Asked Questions (FAQs) About Ways to Maximize Profits When Selling Bitcoin

Is Dogecoin a good investment?

It depends on your risk tolerance and investment strategy. Dogecoin is highly volatile, meaning its price can fluctuate dramatically. While it started as a meme, it now has real-world use cases, a loyal community, and growing adoption for payments. However, its unlimited supply could impact long-term value. If you believe in its potential, it may be worth considering, but always do your research and invest wisely.

How much does it cost to buy 1 Dogecoin?

Dogecoin is known for its constant fluctuations. As such, there’s no fixed rate. When you want to buy Dogecoin, it’s best to use real-time price monitors to determine its price per time. The Breet in-app calculator is your best bet for monitoring these prices. 

How to trade Dogecoin?

You can trade Dogecoin with apps like Coinbase, Kraken, and OkX, which are some of the best crypto apps. You can also sell Dogecoin for cash or swap it for another crypto using the Breet app. All you have to do is choose the crypto you want to swap to, enter the recipient address, confirm the details, and wait for a confirmation message. 

Is Dogecoin safe to buy?

Yes, Dogecoin is safe to buy, but like any cryptocurrency, it comes with risks, especially if you’re not careful. While Dogecoin itself isn’t a scam, if you are looking at trading, you need to watch out for fraudulent schemes, pump-and-dump tactics, and fake investment platforms.