Friday, June 25, 2021

Analysts suggest Dogecoin traders are rotating profits into large-cap altcoins

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Each cryptocurrency bull market has not less than one shock catalyst that comes out of nowhere to excite merchants and spark large buying and selling volumes that elevate the overall market capitalization to new highs. 

The 2021 bull market is not any exception to this rule, and one of many largest catalysts for development this 12 months has been the explosive reputation of Dogecoin (DOGE), which has made headlines in conventional and various monetary circles as its worth surge to new all-time highs over the previous few months.

DOGE/USDT 4-hour chart. Supply: TradingView

With such super development occurring in only a few brief months, it is solely pure for merchants to make strikes that assist lock in features after which seek for the subsequent potential mover to put money into.

The worth motion for DOGE even caught the attention of Jon Bollinger, inventor of Bollinger Bands, who on Might 3 tweeted “$Dogeusd put in a high, fell by 65%, and is now knocking on the door once more whereas $dogebtc is breaking out. Merely superb worth motion.”

Dogecoin was buying and selling close to $0.40 on the time of the tweet however has since skyrocketed 80% to a brand new all-time excessive at $0.69. After immediately’s robust rally, Bollinger to posted the next tweet as a phrase of recommendation to DOGE merchants:

And it seems that some merchants had comparable ideas or took Bollinger’s phrases to coronary heart on Might 5, as the worth of DOGE skilled a pullback of 25% earlier than recovering close to the $0.60 stage.

Giant-cap altcoins profit from Dogecoin’s momentum

A number of observant merchants, together with Digital Forex Group founder Barry Silbert, pointed out that a number of DOGE’s buying and selling exercise has occurred on the Robinhood buying and selling app and that the opposite cryptocurrencies out there on the platform may gain advantage from merchants rolling earnings over from DOGE into slower performing cryptocurrencies.

This turned out to be a prescient viewpoint, as all the main cryptocurrencies out there on Robinhood have seen double-digit features on Might 5, whereas the worth of DOGE has skilled a 25% pullback.

Ethereum Traditional (ETC) has been one of the biggest beneficiaries of the shift in funds, which helped the Ethereum fork blast to a new record high of $100 on May 5. In the same period, Bitcoin Cash (BCH) and Bitcoin SV (BSV) have seen features within the 25%–30% vary.

Whereas the proportion development seen within the worth of Litecoin (LTC) is lower than that of the opposite tokens listed on Robinhood, LTC’s 15% rally pushed the altcoin to a brand new multiyear excessive of $351. This places LTC worth lower than 7% under its earlier all-time excessive at $375.

LTC/USDT 4-hour chart. Supply: TradingView

In line with information from Cointelegraph Markets Pro, market situations for LTC have been favorable for a while. 

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mix of knowledge factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. LTC worth. Supply: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ Rating for LTC started to choose up on April 29 and maintained an elevated stage over the subsequent 4 days earlier than hitting a excessive of 68 on Might 2, round 11 hours earlier than the worth elevated 35% over the subsequent three days.

With DOGE nonetheless buying and selling above $0.58 on the time of writing and hype is continuous to construct forward of Elon Musk’s appearance on the comedy sketch present Saturday Night time Dwell, the bullish worth motion for LTC and the opposite cryptocurrencies out there on Robinhood may proceed as retail merchants new to the crypto market flock to the favored meme coin.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer includes threat, and it is best to conduct your personal analysis when making a choice.