Each cryptocurrency bull market has no less than one shock catalyst that comes out of nowhere to excite merchants and spark huge buying and selling volumes that elevate the entire 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 recognition 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 positive factors after which seek for the following potential mover to put money into.
The worth motion for DOGE even caught the attention of Jon Bollinger, inventor of Bollinger Bands, who on Could 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 at this time’s robust rally, Bollinger to posted the next tweet as a phrase of recommendation to DOGE merchants:
I believe 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 Could 5, as the value of DOGE skilled a pullback of 25% earlier than recovering close to the $0.60 stage.
Massive-cap altcoins profit from Dogecoin’s momentum
A number of observant merchants, together with Digital Forex Group founder Barry Silbert, pointed out that numerous DOGE’s buying and selling exercise has occurred on the Robinhood buying and selling app and that the opposite cryptocurrencies obtainable on the platform may gain advantage from merchants rolling income over from DOGE into slower performing cryptocurrencies.
This turned out to be a prescient viewpoint, as all the main cryptocurrencies obtainable on Robinhood have seen double-digit positive factors on Could 5, whereas the value of DOGE has skilled a 25% pullback.
Count on RH listings to be a significant driver of future returns. pic.twitter.com/i37zaJwGh9
— Alex Krüger (@krugermacro) May 5, 2021
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 positive factors 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 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 information 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 select up on April 29 and maintained an elevated stage over the following 4 days earlier than hitting a excessive of 68 on Could 2, round 11 hours earlier than the value elevated 35% over the following 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 obtainable on Robinhood might 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 is best to conduct your personal analysis when making a choice.