Each cryptocurrency bull market has a minimum of one shock catalyst that comes out of nowhere to excite merchants and spark large buying and selling volumes that raise the whole 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 different monetary circles as its worth surge to new all-time highs over the previous few months.
With such great progress taking place in just some brief 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 worth motion for DOGE even caught the attention of Jon Bollinger, inventor of Bollinger Bands, who on Might 3 tweeted “$Dogeusd put in a prime, fell by 65%, and is now knocking on the door once more whereas $dogebtc is breaking out. Merely wonderful 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 right this 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 fascinated by a prime right here.
— John Bollinger (@bbands) May 5, 2021
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 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 a whole 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 income 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 worth of DOGE has skilled a 25% pullback.
Anticipate RH listings to be a serious driver of future returns. pic.twitter.com/i37zaJwGh9
— Alex Krüger (@krugermacro) May 5, 2021
Ethereum Basic (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 beneficial properties within the 25%–30% vary.
Whereas the proportion 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% beneath its earlier all-time excessive at $375.
In line with information from Cointelegraph Markets Pro, market circumstances for LTC have been favorable for a while.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix 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 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 constant to construct forward of Elon Musk’s appearance on the comedy sketch present Saturday Night time Stay, 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 writer and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails threat, and it’s best to conduct your individual analysis when making a choice.