Just now, a rather dramatic market situation occurred: when Elon Musk once again mentioned the blockbuster news of "sending a Dogecoin to the moon", Dogecoin did not rise sharply, but instead retraced.
So, why did this “nuclear bomb-level benefit” fail to stimulate further price increases? What unknown secrets are hidden behind it? Please break it down with me.
News: All the good news, or is it a trap for the main force?
On the surface, Musk’s renewed mention of the “DOGE-1 lunar mission” and confirmation of accepting Dogecoin payments seems to be a big plus.
But looking deeper, there are several key issues:
This is a repeat of old news that was raised in 2021: at that time he said to "send a Dogecoin to the moon."
The market is experiencing "aesthetic fatigue" for similar good news: after experiencing many previous hypes, retail investors have begun to be more cautious about this "old story again."
More importantly: Giant whales and main players often use this kind of "celebrity news" to "buy news and sell facts" - that is, to ambush and accumulate funds before the news is announced, and then ship while it is hot after the news is announced. In other words: The upside could be a bait.
This positive release did not bring about the expected rise, but fell back. This may just reflect the declining enthusiasm of retail investors to follow the trend, while the main force is quietly operating.
Therefore, when you see "good news" appearing, do not blindly chase the rise. Be wary: Is it because the main force is using the good news to attract you into the market, but they plan to sell goods in advance?
Technical aspect: Struggle under the pressure of death cross
Dogecoin is still subject to the downward trend and moving average suppression after the positive release - especially the mid-term yellow moving average (such as MA20/MA50) currently forming a suppressing trend.
The resistance level is around the $0.170 ~ $0.175 range, which has been a high point area where the price has repeatedly encountered.
The current support level is looking at the $0.160 ~ $0.163 range. If this support fails, the bottom may test near $0.155.
At the same time, the long-short ratio is still high, indicating that retail investors have strong long sentiment, which in turn creates good conditions for the main short sellers.
Operational suggestions (for communication only and do not constitute investment advice)
In the current range, if you want to make a layout, it is recommended to participate in light positions: you can consider entering in a small proportion in the $0.160 ~ $0.163 range.
Stop loss is recommended below $0.158 to prevent support from falling quickly.
If it rebounds to the $0.170 ~ $0.175 range, you may consider reducing your position or partially exiting the market to avoid possible resistance and fall.
Remember: Don’t chase the rise when good news is announced. Following the swarm of retail investors may end up being reversed by the main force.
Summarize
Although the news of "sending Dogecoin to the moon" seems exciting, the market reaction has not exploded as expected: behind this may be the "cooling of enthusiasm" after the good news has been realized, the increasing cautious sentiment of retail investors, and the main force's early layout and later induced operating routines. Technically, it still faces resistance and suppression, which is not conducive to blindly chasing the rise in the short term.
*The above is not investment advice
The article ends here. Next, I will do more detailed market analysis and strategic layout sharing in the communication group. Blindly working alone will never bring opportunities! If you like spot goods or contracts, please scan the QR code below to contact us!
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