Every cryptocurrency bull market has at least one surprise catalyst that arrives out of nowhere to excite traders and spark huge trading volumes that raise the entire market capitalization to new highs.
The 2021 bull market is no exception to this rule, and one of the biggest catalysts for growth this year has been the explosive popularity of Dogecoin (DOGE), that has made headlines from conventional and alternative financial circles as its price surge to fresh all-time highs over the past few months.
With such tremendous growth occurring in only a few short months, it is only natural for dealers to make moves which help lock in gains and then search for the next possible mover to put money into.
The purchase price action for DOGE even caught the eye of Jon Bollinger, inventor of Bollinger Bands, that on May 3 tweeted”$Dogeusd placed in a shirt, fell by 65 percent, and is currently knocking on the door again while $dogebtc is breaking . Simply amazing price actions.””
Dogecoin was trading near $0.40 at the time of the tweet but has since skyrocketed 80 percent to a new all-time high at $0.69. After today’s strong rally, Bollinger to submitted the next tweet as a word of information to DOGE dealers:
I think that ll you dog fans better start thinking about a shirt here.
— John Bollinger (@bbands) May 5, 2021
And it seems that some dealers had similar notions or took Bollinger’s words to center on May 5, as the purchase price of DOGE experienced a pullback of 25 percent before regaining near the 0.60 level.
Large-cap altcoins benefit from Dogecoin’s momentum
Several observant dealers, including Digital Currency Group creator Barry Silbert, pointed out that a good deal of DOGE’s trading activity has occurred on the Robinhood trading program and that the other cryptocurrencies readily available on the platform might benefit from traders rolling profits over from DOGE into slower performing cryptocurrencies.
This turned out to be a prescient viewpoint, as most of the major cryptocurrencies on Robinhood have seen double-digit gains on May 5, while the purchase price of DOGE has experienced a 25 percent pullback.
No other alts on RH yet.
Anticipate RH listings to be a major driver of future yields. pic.twitter.com/i37zaJwGh9
Ethereum Classic (ETC) has been one of the largest beneficiaries of the change in capital, which aided the Ethereum fork blast to a new record high of $100 on May 5. At precisely the exact same period, BTC Cash (BCH) and BTC SV (BSV) have seen gains in the 25%–30 percent array.
While the percent growth seen in the purchase price of Litecoin (LTC) is less than that of another replicas recorded on Robinhood, LTC’s 15% rally pushed the altcoin to a new multiyear high of $351. This places LTC price less than 7 percent below its previous all-time high at $375.