Analysts suspect that Dogecoin traders are converting their profits into high-cap altcoins

Every crypto bull market has at least one unexpected catalyst that shows up to excite traders and spark massive trading volumes that push total 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 caught the world’s all-time highs in recent months.

With such massive growth in just a few months, it’s natural for traders to take profit-taking and then look for the next potential investment incentive.

The price movement for DOGE even caught the attention of Jon Bollinger, the inventor of the Bollinger Bands, of the Simply Unbelievable Price Promotion on the 3rd. “

Dogecoin was trading near $ 0.40 at the time of the tweet, but has since risen 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 you dog lovers better start thinking about a head here.

– John Bollinger (@bbands) May 5, 2021

And it appears that some traders thought the same thing, or that Bollinger on Jan.

Large-cap altcoins benefit from the Dogecoin rally

Several savvy traders including the founder of the Digital Currency Team, Barry Silbert, shown that much DOGE trading has taken place via the Robinhood trading app and that other cryptocurrencies available on the platform can benefit from traders transferring profits from DOGE to other cryptocurrencies. Cryptocurrencies work slower.

This proved to be a forward-looking view as all of the major cryptocurrencies available on Robinhood posted double-digit gains on May 5th while the DOGE price fell 25%.

#Dog The wealth effect overflows into RobinHood-Alts: $ LTC $ BCH $ BSV $ ETC. There are no other alts available on RH yet.

The reproductive health list is expected to be the main driver of future gains. pic.twitter.com/i37zaJwGh9

– Alex Krüger (@krugermacro) May 5, 2021

Ethereum Classic (ETC) was one of the biggest beneficiaries of the remittance, which on May 5th helped the Ethereum fork explode to a new record high of $ 100, rising between 25 and 30%.

While the percentage growth in Litecoin (LTC) price is lower than other tokens listed on Robinhood, LTC’s 15% rally has propelled the altcoin to a new multi-year high of $ 351. This puts the LTC price 7% below its previous all-time high of $ 375.

According to data from Cointelegraph Markets Pro, market conditions have been quite favorable for LTC for some time.

The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of current and historical market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.

As can be seen in the graph above, the VORTECS ™ Score for LTC started rising on April 29th and stayed higher for the next four days before hitting a high of 68 on May 2nd, about 11 hours before prices increased than 35% increased. the next three days.

DOGE is still trading above $ 0.58 at the time of writing, and the hype continues to build ahead of Elon Musk’s appearance on the comedy sketch show Saturday night live, bullish action on LTC and other cryptocurrencies available on Robinhood could continue as retailers new to the crypto market flock to the popular meme.