Each cryptocurrency bull market has at the least one shock catalyst that comes out of nowhere to excite traders and spark large buying and selling volumes that raise the entire market capitalization to new highs.
The 2021 bull market is not any exception to this rule, and one of many greatest 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 value surge to new all-time highs over the previous few months.
DOGE/USDT 4-hour chart. Supply: TradingView
With such great development occurring in just some brief months, it is solely pure for traders to make strikes that assist lock in positive aspects after which seek for the following potential mover to spend money on.
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 top, fell by 65%, and is now knocking on the door again while $dogebtc is breaking out. Simply amazing price action.”
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 in the present day’s sturdy rally, Bollinger to posted the next tweet as a phrase of recommendation to DOGE traders:
I believe that ll you canine lovers higher begin serious about a high right here.
— John Bollinger (@bbands) Could 5, 2021
And it seems that some traders had comparable ideas or took Bollinger’s phrases to coronary heart on Could 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 traders, together with Digital Foreign money Group founder Barry Silbert, identified 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 accessible on the platform may gain advantage from traders rolling profits over from DOGE into slower performing cryptocurrencies.
This turned out to be a prescient viewpoint, as all the main cryptocurrencies accessible on Robinhood have seen double-digit positive aspects on Could 5, whereas the worth of DOGE has skilled a 25% pullback.
Anticipate RH listings to be a significant driver of future returns. pic.twitter.com/i37zaJwGh9
— Alex Krüger (@krugermacro) Could 5, 2021
Ethereum Traditional (ETC) has been one of many greatest beneficiaries of the shift in funds, which helped the Ethereum fork blast to a brand new file excessive of $100 on Could 5. In the identical interval, Bitcoin Money (BCH) and Bitcoin SV (BSV) have seen positive aspects within the 25%–30% vary.
Whereas the share development seen within the value 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 value lower than 7% under its earlier all-time excessive at $375.
LTC/USDT 4-hour chart. Supply: TradingView
In line with knowledge from Cointelegraph Markets Professional, 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 mixture of knowledge factors together with market sentiment, buying and selling quantity, latest value actions and Twitter exercise.
VORTECS™ Rating (inexperienced) vs. LTC value. Supply: Cointelegraph Markets Professional
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 worth 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 look on the comedy sketch present Saturday Night time Dwell, the bullish value motion for LTC and the opposite cryptocurrencies accessible on Robinhood may proceed as retail traders new to the crypto market flock to the favored meme coin.
The views and opinions expressed right here are solely these of the creator and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer entails threat, and it’s best to conduct your personal analysis when making a call.