Here are 3 reasons why DOGE, the native cryptocurrency of the Dogecoin network, has increased by 123% in the last seven days as the altcoin market has grown again.
April 15, 2021 | AtoZ Markets – The price of Dogecoin rose more than 123% this week, reaching a new high of $0.13 due to the strong technical boost.
It is competing with Chainlink’s LINK for the top 10, with both cryptocurrencies hovering around $17 billion in market capitalization.
There are three main reasons why DOGE has appreciated sharply in the past seven days. This includes:
- Elon Musk’s tweets,
- the resurgence of altcoins,
- and the positive feeling around cryptocurrency in general.
Altcoin market rises sharply with positive sentiment
Over the past week, many of the altcoins, such as XRP, Tron, and Stellar, have seen huge spikes after the rise of Bitcoin to a new historic high above $64,000.
XRP, for example, exceeded $1.5 for the first time in more than three years, showing that Bitcoin and Ether profits are possibly turning into altcoins in the short term.
Kelvin Koh, a partner at the Spartan Group – one of the largest DeFi-focused funds in Asia – explained that this trend happens periodically because the sum funds negotiate the convergence between Bitcoin and altcoins.
“The reason this happens periodically is because there are a lot of money funds out there that play the $BTC convergence negotiation and a handful of liquid alts. Whenever something looks cheap compared to $BTC, they accumulate. When it looks expensive, they return to $BTC. There are no fundamentals involved, so don’t try to rationalize movements. This strategy has proven to be effective over time and there are enough managers doing this which makes it self-fulfilling and remains recurring. ”
The overall increase in momentum in the altcoin market has played an important role in fueling Dogecoin’s overall momentum over the past few days.
Technical traders echoed a similar sentiment about the sharp rise in altcoins last week.
Is the Altcoin market setting itself up for a dip in the short-term?— Rekt Capital (@rektcapital) April 12, 2021
It's a possibility
But pull-backs from here would not only be a healthy development for Altcoins
But also a necessary one for many of them to confirm higher timeframe breakouts before further upside#Crypto
However, another well-known cryptocurrency trader, Loma, said the fundamentals around most altcoins have not changed.
Therefore, if traders trade altcoins that are emerging based on technical analysis, but disregard the technical aspect, there is a great chance that the trader will not be successful.
The merchant explained:
“Friendly reminder that the fundamentals of most of these fossil coins are identical to what they were months or even years ago. As an altcoin dealer, if you entered into a TA exchange, but disregard TA to FA somewhere in that trade, you are more often … fucked up.”
Elon Musk tweeted about Dogecoin
In addition to the technical momentum of the altcoins, which directly fueled Dogecoin’s upward trend, Musk tweeted about DOGE on Thursday once again.
Musk wrote, “Doge Barking at the Moon” with a meme that suggests higher DOGE prices. The price of a cryptocurrency can skyrocket when a well-known public figure or influencer tweets about a less liquid altcoin, and this time it was no different.
Doge Barking at the Moon pic.twitter.com/QFB81D7zOL— Elon Musk (@elonmusk) April 15, 2021
Despite Musk’s affection for Dogecoin, Tesla invested exclusively in Bitcoin, adding approximately 48,000 BTC currently worth $2.5 billion to its balance sheet, while directly accepting BTC for its electric vehicles.
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