Analysts suggest Dogecoin traders are rotating profits into large-cap altcoins
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 surged to new all-time highs over the past few months.
With such tremendous growth happening in just a few short months, it’s only natural for traders to make moves that help lock in gains and then search for the next potential mover to invest in.
The price action for DOGE even caught the eye of Jon Bollinger, inventor of Bollinger Bands, who on May 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 trading near $0.40 at the time of the Tweet but has since skyrocketed 80% to a new all-time high at $0.69. After today’s strong rally, Bollinger to posted the following tweet as a word of advice to DOGE traders.
And it appears that some traders had similar thoughts or took Bollinger’s words to heart on May 5 as the price of DOGE experienced a pullback of 25% before recovering near the $0.60 level.
Large-cap altcoins benefit from Dogecoin’s momentum
Several observant traders, including Digital Currency Group founder Barry Silbert, pointed out that a lot of DOGE’s trading activity was happening on the Robinhood trading app and that the other cryptocurrencies available on the platform could benefit from traders rolling profits over from DOGE into slower performing cryptocurrencies.