Over the past day, Dogecoin (Doge) cryptocurrency has shown multiple growth. The token rate began to rise yesterday, January 28, from the $ 0.0075 mark. Last night it reached $ 0.0875, setting a new all-time high. The growth was over 1000%. On January 29 at 16:30 Moscow time, Doge costs $ 0.056.
The rise of cryptocurrency quotes began after it was discussed on social networks. Twitter user WSB Chairman asked his 380,000 followers on January 28 (which had grown to 750,000 by January 29) which coins they hold. Later, he singled out Doge among the assets named by subscribers, which was followed by a sharp increase in the price of the coin. Members of the communities r / CryptoCurrency and r / SatoshiStreetBets on Reddit also began to buy cryptocurrency. The “warming up” of the asset followed the same logic as the purchase of shares of GameStop, which in recent weeks have risen in price by thousands of percent, as well as some other assets that, as Reddit members believed, were undervalued by the market. Growth was also fueled by the fact that you can buy Doge on the RobinHood trading platform, popular in the USA.
RBC Crypto asked market experts what other cryptocoins can follow the path of Dogecoin and take a sharp rise thanks to a targeted “warm-up”.
Waiting for the “pump”
Alexei Markov, the leading trader of the UTEX crypto exchange, admitted that ups like Doge in the cryptocurrency market will continue, and with a probability of 80-90% Bitcoin will be “pumped” (“warmed up” the price). The likelihood that the rate of the first cryptocurrency will double by the end of next week, if such activity in the market will continue, is “the greatest possible,” he said.
Over the past day, bitcoin has already shown a significant increase – by 20%. The key reason for this dynamic was Elon Musk’s gesture. In the profile of his Twitter account, he posted the hashtag of the first cryptocurrency, within half an hour after that, its rate rose from $ 32 to $ 37 thousand.
Viktor Pershikov, a leading analyst at the 8848 Invest investment company, agreed that new “pumps” may soon take place. The cryptocurrency market is likely to be visited by traders who did not have time to take part in the upsurges in stock quotes that occurred earlier in the stock market.
The next contenders for the “pump” can be Eos (EOS), Tron (TRX), Bittorent (BTT) or OmiseGO (OMG) tokens, Pershikov admitted. He explained that what these coins have in common is that they did not react to the market growth at the end of last year or the beginning of this year, so they may be affected by the low base effect.
“A cheap coin will be chosen for the pump, possibly one of the listed ones, but at the same time its capitalization will correspond to the level of the first hundred of the crypto market. It is unlikely that an unknown token will be chosen for the pump; rather, on the contrary, it will be a coin with good liquidity available on the largest exchanges, “Pershikov argues.
Other criteria were given by Nikita Zuborev, senior analyst of the service for monitoring electronic money exchangers Bestchange.ru. Traders can be attracted primarily by cryptocurrencies, for which significantly more short positions are open, he said. Their liquidation will act as a price growth driver. Also, the choice may fall on “junk” altcoins with low liquidity.
Another criterion Zuborev called the availability of options when it comes to cryptocurrencies with a large capitalization. Another factor is the origin of the coin. Traders can “pump” tokens that were created for fun.
Dogecoin (DOGE), Ripple (XRP), Ethereum Classic (ETC), Uniswap (UNI), Sushiswap (SUSHI), Burgerswap (BURGER) tokens and others fall under these criteria, Zuborev continued. But he stressed that if the pump does happen, the effect will be very short-lived. The community on Reddit or other groups are unable to coordinate their actions and hold open positions against the big players. In addition, the cryptocurrency market works around the clock, it is impossible to manipulate the price of assets, as in the stock market, before the opening of the main session or after it closes, the analyst concluded.
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