What can you say about Dogecoin that hasn’t been said before? How about this: Elon Musk’s tweets aren’t the only thing that let the DOGE out.
This week, right in the middle of the retail trading frenzy that has turned everyone’s favorite cartoon puppy into a rabid bull-doge, Cointelegraph Markets Pro subscribers had the opportunity to chow down on a NewsQuake™ from Bitfinex, which can be seen as further exciting a rally all the way from $0.48 to $0.68.
Dogecoin (DOGE) Analysis
In the chart below you can see where the news was delivered to Markets Pro members via Discord and their mobile notifications (the red circle) and the immediate and dramatic price rise that followed.
NewsQuakes™ are sourced from a real-time aggregation engine, collated from over a thousand primary sources every minute and analyzed by an AI algorithm to determine the historical significance of the news. NewsQuakes™ are trained on staking announcements, exchange listings and key partnerships, and because they are delivered without human intervention, they can often be the fastest way for market participants to learn about major events in the cryptocurrency space.
In this case, everything seems to have worked as if it was a regular coin: A listing on a big exchange resulted in immediate price action that began to recede after roughly a day. Yet, when dealing with Dogecoin-related news, it doesn’t hurt to exercise caution and remember that this asset’s relationship with the news cycle is unlike any other.
iExec (RLC) Analysis
On the subject of NewsQuakes™ there was another perfect example this week of how the early trader gets the profits.
iExec (RLC) was hit by two consecutive NewsQuakes™, helping the asset add around 70% of value over the week. On May 4 came the announcement of a Coinbase listing – traditionally a very powerful type of news (first red circle in the chart below).
A similar announcement from Bithumb came in just 36 hours after the first, compounding the coin’s momentum (second red circle).
At this point, it becomes challenging to attribute the price dynamic to one of the two events, since the Coinbase announcement’s effects hadn’t yet expired (the system looks at 72-hour returns) when Bithumb’s kicked in.
Those Markets Pro subscribers who quickly acted on either of the NewsQuakes™ are likely fine with not knowing the exact contributions of each listing, however. In both cases, the value of being first to the news is clear from the immediate positive price action.
Telcoin (TEL) Analysis
This analysis wouldn’t be complete without a word about Telcoin (TEL), which rallied dramatically to ascend from just $0.11 to over $0.48 shortly after a Markets Pro member suggested adding the cryptocurrency to the platform.
While VORTECS™ Scores can take time to generate, they still look at the entire trading history of the newly-listed asset — thus when Telcoin’s first VORTECS™ Score was displayed, the algorithm already had clear confidence in bullish conditions for the token.
As seen in the chart below, VORTECS™ continued to identify strong bullish momentum even as the price rose, peaking at an almost-unprecedented score of 95 around 48 hours before the final push towards the $0.48 price spike.
The VORTECS™ Score is available exclusive to Cointelegraph Markets Pro members, and includes sentiment analysis, tweet and trading volume, and price action as components of the algorithm — which are then weighted according to a proprietary formula based on how similar these are to historical conditions. If there is a similarity in these factors, the score will be higher when historical precedents have most consistently led to higher prices.
VORTECS™ Score returns since January 3
The Markets Pro team has been tracking 42 sample strategies since January 3 2021, based on entering a position when the VORTECS™ Score crosses a threshold, and exiting it either when another score is reached or after a set period of time. The following data is taken from a snapshot on May 8th 2021 at 1pm ET. The full methodology is available here.
Holding Bitcoin: 79% return
Holding Top 100 altcoins: 485% return
Best-performing time-based VORTECS™ strategy (Enter 80 / Exit 24 hours): 2,467% return
Best-performing score-based VORTECS™ strategy (Enter 80, Exit re-crossing 80): 2,800% return
Mapping how Dogecoin can make it in the big leagues
While Dogecoin is still considered a meme coin by many, the premise of that joke is the apparent lack of use cases. Even so, yesterday’s news did fuel some sort of hope for Dogecoin fans.
Could this be the moment that puts DOGE on the map in the big leagues? Might this be the moment Dogecoin, the “joke crypto,” finally grows up and makes it big?
DOGEing its way up
A few days ago, AMC Theatres CRO Adam Aron conducted a poll to discuss the possibility of the theatre chain accepting DOGE for payments. Not surprisingly, 77% of the 140k voters were in support. Additionally, the DOGEfather pitched in as well and said that DOGE needs to reduce the transaction fees for the system to be viable.
This is true since the average fee right now is around $0.5 and even peaked at $1.3, earlier last month. The transaction fees, at the moment, are higher than the price of 1 DOGE itself, trading at $0.2.
Dogecoin average transaction fees | Source: BitcoinInfoCharts
What’s more, even though the network is capable of processing 40 transactions per second and conducts transactions worth more than $1 billion every day, it’s lacking in participation. Presently, less than 6.5% of all the addresses hold any balance.
Plus, a rise in investors is observed usually when DOGE is in the news or hyped because of some reason or the other. However, it soon loses that traction.
This is apparent when the UTXOs are looked at. This week alone, UTXOs for less than a day rose from 0.45% to 5.94%. On the contrary, the same for between 1 day to 1 month fell by 7.5%.
As a matter of fact, it is. As previously mentioned, DOGE picks up strength in moments of hype. And, this can be observed from the data obtained from social behavior as well. Social volumes were low until the AMC announcement, following which, they suddenly spiked on the charts.
Similarly, Twitter users spiked to a 2 month-high over the same period, before eventually dropping once again.
Of late, DOGE has also seen an increase in long-term holders. That is good for the crypto’s price. However, its velocity needs to increase as well to support daily use, especially since it has been dormant since the end of July.
Webcams Site, BongaCams, Becomes Next Major Player to Accept Dogecoin
The success and popularity of the cryptocurrency asset, Dogecoin, continues to trend upward as BongaCams has just become the next on a growing list of market-leading companies announcing their adoption of the digital currency as a payment option. Dogecoin, now the world’s 8th largest digital asset, is surging once again and continues to enjoy support from investors and celebrities alike, including Tesla CEO Elon Musk, who has tweeted favorable comments about the currency on multiple occasions, even calling Dogecoin the “future currency of Earth.”
BongaCams, the biggest webcam site on the web, and recipient of multiple industry awards, has formally announced that they will be the next major name to begin accepting Dogecoin. BongaCams has built a reputation for being closely aligned to the needs of their customers and the company has made extensive efforts to provide an accessibility experience that is fast, easy, and comfortable. When it came to offering payment options that customers wanted BongaCams couldn’t ignore all that DogeCoin had to offer in terms of fast and anonymous payment options for their customers, and broad market acceptance.
And what’s not to love about Dogecoin? After soaring 15,000% in value and reaching a market cap of $88 billion, the cryptocurrency has built one of the largest and most active communities in the cryptocurrency world and is now considered a great alternative for payment options. Dogecoin’s popularity along with the abundant praise from research analysts who expect the ascent to continue have helped Dogecoin succeed where other cryptocurrency coins have struggled.
For those interested in using Dogecoin as a payment option – BongaCams offers wide array of helpful resources and exchange services with instructions on how to easily purchase Dogecoin online.
One Thing Must Happen To Spark Widespread Dogecoin Adoption, According to Elon Musk
Business magnate and billionaire Elon Musk says Dogecoin (DOGE) must make one key change before it can be realistically used for everyday transactions.
The fees associated with transacting DOGE are far too high, rendering the cryptocurrency not yet viable to be used as a medium of exchange, according to Musk.ADVERTISEMENT
Musk’s comments come on the heels of AMC Entertainment CEO Adam Aron conducting a poll which asked if the cinema chain should adopt the memecoin. Out of the survey’s 140,000 respondents, 77% said AMC should adopt Dogecoin.
In response to Dogecoin co-founder Bill Markus’s excitement about these poll results, Musk tweets,
“[It’s] super important for DOGE fees to drop to make things like buying movie tix viable.”
This marks the third time in recent months that Musk has called for DOGE to improve in some manner.
In June, Musk tweeted that it’s “important to support” a proposal by Dogecoin developers that suggested changing the crypto’s transaction fees, and in August he praised the memecoin for upgrading its node count, which did result in lower fees.
Currently, the average transaction fee for the memecoin is $0.49, a 414% decrease from its six-month high of $2.52, according to BitInfoCharts.
DOGE is currently trading at $0.22, according to CoinGecko.
Cardano Partners with Chainlink to Integrate Oracles for Advanced Smart Contracts
Litecoin: These signals lend more credence to a bearish trend as opposed to a rally
Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone
Bitcoin1 week ago
Protesters in El Salvador Set Fire to Bitcoin ATM in Defiance of President Bukele
Avalanche (AVAX)2 days ago
Avalanche Price Prediction – Will AVAX Price Hit $100 in 2021?
Bitcoin2 days ago
Bitcoin hodlers are about to spark a run to new BTC price highs, data suggests
Dogecoin3 months ago
Elon Musk Shows “Deepest Desire” of Dogecoin Holders
Bitcoin2 days ago
Too ‘grande’ to fail — Bitcoin price stumbles at $44K as China plans for Evergrande’s implosion
Dogecoin2 days ago
Elon Musk Says It’s “Super Important” for Dogecoin Fees to Drop
Cardano2 days ago
Cardano (ADA) Will Moon Shot to $4 by the End of 2021
Ripple23 hours ago
Ripple CEO Open to Settling with SEC, but Under One Condition