When You Decide to Buy a Meme Coin…

I bought some Dogecoin the other day. If that sounds a little crazy to you, don’t worry. I’m not feeling like the world’s most sophisticated trader

I bought some Dogecoin (CRYPTO: DOGE) the other day.

If that sounds a little crazy to you, don’t worry. I’m not feeling like the world’s most sophisticated trader when my phone buzzes with DOGE price alerts.

The reality of this trade sounds ridiculous when you spell it out: I bought a small amount (about 10% of what I would consider a full-size position) of crypto that was started as a joke and infamously evolved into a popular meme coin.

Before I get into why I’m throwing money at meme coins and where I think they’re headed, here’s a quick-and-dirty history of Dogecoin for the uninitiated:

Dogecoin (DOGE) gained popularity on internet message boards and quickly morphed into a popular meme. DOGE has become so popular, in fact, that it has spawned similar meme coins and tokens such as Shiba Inu (the same breed used as the Dogecoin mascot, of course).

During the roaring 2020-early 2021 crypto bull, DOGE was the topic of a popular TikTok meme that attempted to push the price to $1. That move ultimately failed, and DOGE was eventually chewed up during the 2022 bear market, bottoming out just above 5 cents.

As you’ve probably guessed, DOGE has started to recover. It’s sneaking back above 40 cents and curling toward those 2021 highs. DOGE’s growth has evolved from a crypto-joke into a top-ten coin by market cap. That’s right — this big dog is now a $65 billion force in the crypto space, around the same size as old-school oil services biz Schlumberger (SLB).

More importantly, DOGE has now rallied more than 300% off its fall lows, setting it up for a much bigger breakout…

I didn’t buy DOGE because of a TikTok trend.

I didn’t buy it because I believe Trump’s win will somehow trigger a new golden age for crypto…

I didn’t buy it because Elon Musk’s new “position” as co-chair of the Department of Government Efficiency (DOGE) is some sort of magical incantation that will somehow 10x Dogecoin over the next year (though it might)…

I bought DOGE because momentum is increasing as Bitcoin speculators begin to trickle down the cap scale to these smaller, potentially explosive trades. Yes, I still like Bitcoin here. I think it will continue to push higher and top $100K soon. But it’s also important to remember that in these crypto bull markets, we begin to see the smaller meme coins ignite as Bitcoin consolidates.

Plus, it’s still early! I don’t think Bitcoin has run out of gas just yet. When we look back on the last big meme coin rally, a majority of the gains materialized after Bitcoin had already topped out.

If you’re not a crypto aficionado, this all might sound completely bizarre — or worse, totally stupid and not worth your time.

But trading isn’t about acting smart. It’s about making money. And right now, there’s money to be made in these smaller cryptocurrencies.

‘Tis the Season for Crypto Madness

We’ve spent the past several weeks chronicling the melt-up rally that has helped vault the averages to new highs. Now, with a little more than four trading weeks left in 2024, we have been gifted by one of those magical markets that over-delivers on momentum moves and breakouts.

As traders, it’s our job to take full advantage of these conditions.

While many of the bigger leaders from earlier this year continue to consolidate, smaller stocks and those big growth bases we’ve been tracking are ripping higher. All the cool kids are putting on their speculator hats and chasing smaller momentum stocks.

That means we’ll need to toss some of our common sense out the window. Many ideas that the market would deem “too stupid to float” are going to do well in this type of environment. Embrace it!

Of course, these melt-up moves are amplified in the crypto space. Bitcoin is still consolidating just short of $100K. Meanwhile, the alt-coins and tokens have been exploding left and right. Now is a great time to dive into these murky waters to see if your favorite meme coin will double overnight.

How high can the coins go? How long will this crypto bull cycle last?

I can’t say for sure. But I don’t think we’ve seen the top just yet! Seasonal trends for the stock market are strong in December into January — which also happens to be when Bitcoin and the crypto market have enjoyed their biggest rallies (think back to 2017 and 2020