Every cryptocurrency bull market has at least one surprise catalyst that comes out of nowhere to excite traders and trigger massive trading volumes that push overall market cap 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), which has made headlines in traditional and alternative financial circles as its price surge to new all-time highs in the last few months.
With this tremendous growth in just a few months, it’s only natural for traders to take steps that will help generate profits and then look for the next potential engine to invest in.
The price campaign for DOGE even caught the eye of Jon Bollinger, the inventor of the Bollinger Bands, who tweeted on May 3rd: “$ Dogeusd has hit a top, is down 65% and is now knocking on the door again while $ dogebtc breaks out. Simply amazing price promotion. “
Dogecoin was trading near $ 0.40 at the time of the tweet, but has since increased 80% to a new all-time high of $ 0.69. After today’s strong rally, Bollinger posted the following tweet as advice to DOGE dealers:
I think dog lovers better start thinking about a top here.
– John Bollinger (@bbands) May 5, 2021
And it seems that some traders had similar thoughts or took Bollinger’s words to heart on May 5th, when DOGE’s price saw a 25% drop before rebounding near the $ 0.60 level.
Large-cap altcoins benefit from the dynamism of Dogecoin
Several attentive traders, including the founder of the Digital Currency Group, Barry Silbert, pointed out that much of DOGE’s trading activity has taken place in the Robinhood trading app and that the other cryptocurrencies available on the platform could benefit from traders Convert profits from DOGE into cryptocurrencies with slower performance.
This turned out to be a cautious position as all of the major cryptocurrencies available on Robinhood saw double digit gains on May 5th, while DOGE’s price saw a 25% decline.
#Doge wealth effect spilling over to the RobinHood alts: $ LTC $ BCH $ BSV $ ETC. No other alts available on RH yet.
Expect RH listings to be a major driver of future returns. pic.twitter.com/i37zaJwGh9
– Alex Krüger (@krugermacro), May 5, 2021
Ethereum Classic (ETC) was one of the biggest beneficiaries of the shift in money that helped the Ethereum fork hit a new record high of $ 100 on May 5th. Over the same period, Bitcoin Cash (BCH) and Bitcoin SV (BSV) have seen gains ranging from 25% to 30%.
While the percentage growth in the price of Litecoin (LTC) is less than that of the other tokens listed on Robinhood, LTC’s 15% rally brought the altcoin to a new multi-year high of $ 351. This puts the LTC price at USD 375, less than 7% below its previous all-time high.
According to Cointelegraph Markets Pro, market conditions have been favorable for LTC for some time.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the graph above, the VORTECS ™ Score for LTC began rising on April 29th and stayed elevated for the next four days before hitting a high of 68 on May 2nd, about 11 hours before the price rose 35% over the next three days.
With DOGE still trading above $ 0.58 at the time of writing, the hype continues to grow before Elon Musk appears on the comedy sketch show Saturday night liveThe bullish price movement for LTC and the other cryptocurrencies available on Robinhood could continue as retailers new to the crypto market flock to the popular meme coin.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk and you should conduct your own research when making a decision.