Each cryptocurrency bull market has at the least one shock catalyst that comes out of nowhere to excite merchants and spark large buying and selling volumes that raise the full market capitalization to new highs.
The 2021 bull market isn’t any exception to this rule, and one of many greatest catalysts for progress this yr 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.
With such large progress occurring in only a few quick months, it is solely pure for merchants to make strikes that assist lock in beneficial properties after which seek for the subsequent potential mover to spend money on.
The value 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 at the moment’s robust rally, Bollinger to posted the next tweet as a phrase of recommendation to DOGE merchants:
I feel that ll you canine lovers higher begin serious about a high right here.
And it seems that some merchants had comparable ideas or took Bollinger’s phrases to coronary heart on Might 5, as the value of DOGE skilled a pullback of 25% earlier than recovering close to the $0.60 degree.
Massive-cap altcoins profit from Dogecoin’s momentum
A number of observant merchants, together with Digital Foreign money Group founder Barry Silbert, pointed out that quite a lot 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 benefit from merchants rolling earnings over from DOGE into slower performing cryptocurrencies.
This turned out to be a prescient viewpoint, as all the most important cryptocurrencies out there on Robinhood have seen double-digit beneficial properties on Might 5, whereas the value of DOGE has skilled a 25% pullback.
#Doge wealth impact spilling over to the RobinHood alts: $LTC$BCH$BSV$ETC. No different alts out there on RH but.
Whereas the share progress 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.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mixture of knowledge factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.
As seen on the chart above, the VORTECS™ Rating for LTC started to choose up on April 29 and maintained an elevated degree over the subsequent 4 days earlier than hitting a excessive of 68 on Might 2, round 11 hours earlier than the value 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 Reside, 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 below 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’s best to conduct your individual analysis when making a choice.