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85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet After gaining the spotlight due to a 980% pump on Jan. 28, Dogecoin (DOGE) briefly entered the top 10 ranking by market capitalization for the first time since 2015. Once the massive pump lost momentum and traders quickly took profits, it seemed that investors would move on past the meme-based cryptocurrency and find something else to invest in.  The pump initially started when exchanges prevented retail traders from buying more GameStop and AMC stock on Jan. 28. Fueled by the Reddit discussion group r/Wallstreetbets, the army of investors turned their attention to silver and a selection of ‘cheap’ cryptocurrenceis. On Jan.28, Twitter user “WSB Chairman” asked, “Has Doge ever been to a dollar?” to his 750,000 followers. That was enough to trigger the monster rally, despite Dogecoin having no protocol upgrades or developments since 2015. DOGE/USDT 1-hour chart. Source: TradingView The 68% retracement that fol...

Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week. Dogecoin’s (DOGE) recent pump and dump caused several new traders who bought due to FOMO to lose money within a short time and this scenario is likely to play out again as social media groups have decided that collective pumps of altcoins is a new method of investing. A similar trend currently seems to be developing in Bitcoin (BTC), which has retraced a large portion of the up-move that was caused due to the “Elon pump” on Jan. 29. This shows that barring a few emotional buyers, most professional traders may have used the rally to lighten their long positions. Crypto market data daily v...

Is the weakness of Bitcoin after the ‘Elon Musk pump’ hinting at a bull trap? The price of Bitcoin (BTC) is showing overall weakness as it struggles to establish $34,000 as a support level. Overall, BTC appears to be stagnating without signs of a short-term relief rally, leading traders to be cautious. One concerning trend is that the volume of Bitcoin has been stagnating along with its price, apart from the “Elon pump” on Jan. 29. This trend indicates that there is an overall drop in buyer demand since the $42,000 top despite BTC hovering in the low $30,000 region. BTC/USDT 4-hour price chart (Binance). Source: TradingView.com Bitcoin gets choppy after revisiting $38,000 On Jan. 29, the price of Bitcoin rose to as high as $38,461 on Binance after Tesla CEO and the world’s richest man, Elon Musk, ostensibly showed support for Bitcoin. However, before this rally, on-chain analysts were already warning that the momentum of Bitcoin was slowing. Ki Young Ju, the CEO of CryptoQuant...

XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’ XRP price underwent a strong 86% breakout in the early trading hours on Jan. 30 as the fourth-ranked cryptocurrency by market cap became the new coin of focus in the r/Wallstreetbets cryptocurrency-focused off-shoot r/Satoshistreetbets.  Data from Cointelegraph Markets and TradingView shows that XRP rose from $0.28 to a peak at $0.51 before profit selling pulled the price back to $0.41. XRP/USDT 15 minute chart. Source: TradingView It appears that the antics of the past week which saw r/Wallstreetbets pump GameStop, AMC and Dogecoin (DOGE), have carried over into the weekend as Stellar (XLM) also saw its price pump in tandem with XRP. After rallying more than 800%, DOGE price is now down 71% from its recent all-time high of $0.078 on Jan. 29. Data from TheTIE also shows that the rally in XRP price coincided with a drastic jump in tweet volume. XRP price vs. Tweet volume. Source: TheTIE Stellar (XLM) ha...

FTX Token (FTT) rallies 105% as interest in derivatives trading grows FTX is a cryptocurrency derivatives exchange backed by Alameda Research, a quantitative trading firm and crypto liquidity provider.  The exchange launched in April 2019 and offered the usual spot trading, inverse swaps and futures contracts that can be found at other major platforms. By early 2020, the exchange launched its daily and weekly binary BTC options markets. FTT/USDT daily chart. Source: TradingView FTT is the exchange’s native token and it’s issued on the Ethereum blockchain. FTT stakers are granted a trading fee discount based on a tiered system and other benefits include bonus votes in their polls and increased airdrop rewards. The first airdrop took place in August 2020 when 500 million Serum (SRM) tokens were distributed to FTT holders. To differentiate itself from competitors, the users’ collateral is shared in one universal stablecoin wallet. This means traders can reduce their margin req...

Bitcoin price chart shows ‘Elon Musk’ pump was an outlier — So what happens now? Bitcoin (BTC) has seen a very volatile week, as the price of Bitcoin jumped around from $32,000 to $38,500 and back toward $33,000 in a matter of 24 hours.  The initial spike to $38,500 happened in minutes after Elon Musk added #Bitcoin to his Twitter profile. However, no follow-up of that price movement was seen on the charts as Bitcoin dropped substantially in the following hours. Currently, the $34,500 area is a significant resistance zone to break through if the market wants to sustain the bullish momentum. Failure to break $38,000 causing dropdown XBT/USD 4-hour chart. Source: TradingView The levels that are critical to watch are highlighted in the chart above. Simply put, $38,000 must break for the rally to continue. Flipping this level for support opens the door to new all-time highs. However, the surge couldn’t be sustained yesterday. After the $38,000 level’s failure, the $34,000 leve...

Bitcoin price returns to troubled waters hours after Elon Musk’s BTC tweet When Bitcoin’s (BTC) price dropped 10% to $29,150 on Jan. 27, something unusual happened with the Chicago Mercantile Exchange (CME) BTC futures contracts.  As the price fell, these CME Bitcoin futures traded at a 1% discount to Coinbase, which signaled a disarrangement between both markets. Good morning. Bitcoin spot has almost full retraced the weekly. CME bitcoin futs are both backwardian and expire Friday. That is all. — i.am.nomad (@IamNomad) January 27, 2021 Immediately, traders suggested that futures contracts, which were set to expire in 48-hours, were responsible for the price dump. Now, before rushing to quick conclusions, one should note that every short sale needs a buyer (long) of the same size. Thus, there can not be an open interest imbalance. Moreover, futures contracts can be extended (rolled over) for a future date, as long as its holder has enough margin to cover it. Instead of as...

World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play? Bitcoin (BTC) has been correcting since the peak high at $42,000. However, this correction might have ended as a significant momentum shift occurred in recent days.  The GameStop debacle raised many questions about big parties’ trustworthiness and exchanges, after which more and more people started to claim that decentralization is the future. Among these people is Elon Musk who is worth nearly $183 billion, according to Forbes making him the world’s richest person. The Tesla CEO included #Bitcoin in his Twitter profile and also wrote “in retrospect, it was inevitable.” A very cryptic message to his 44 million followers, which some may interpret as Musk investing in Bitcoin. In retrospect, it was inevitable — Elon Musk (@elonmusk) January 29, 2021 However, this tweet and profile change from Elon Musk prompted a new rally on Jan. 29 with price surging from $32,500 to $38,000 in a matter of minut...