The Dogs are Back in Crypto Town

by | Aug 16, 2022 | Crypto

Howdy, traders. It’s Matt.

The meme stonk craze isn’t just for stocks anymore… 

Move over GameStop Corp. (NYSE: GME), Bed Bath & Beyond Inc. (NASDAQ: BBBY), and AMC Entertainment Holdings Inc. (NYSE: AMC).

The dogs are taking back their territory in meme land and making massive moon jumps.

Traders eager for action over the weekend sent these coins soaring: Shiba Inu (SHIB) and Dogecoin (DOGE)

But what was the momentum really about? Yup, there’s a catalyst involved here. And we might still have a month of action ahead of us before it’s time to “sell the news.”

Let’s get into the story that’s got these two dogs running wild…

What Are These Dog Coins Barking About?

If you’re just starting to get a handle on the difference between a sector leader and altcoins, check this out for a clear breakdown.

Right now, Ethereum (ETH), the crypto sector leader second only to Bitcoin (BTC), is transforming its blockchain technology in a big way. 

It’s moving from a proof-of-work (PoW) model to a proof-of-stake (PoS) model in a highly anticipated move called “Merge”.

If You’re Going to Trade Crypto… Watch This Demo First

It reveals exactly how to tell which cryptos to buy.

And more importantly, which ones to keep your hard-earned money away from.

The goal of the transition is to make Ethereum faster and more energy efficient. A popular but smaller coin by market cap that uses the PoS model is Cardano (ADA). Solana (SOL) uses PoS and Proof-of-History (PoH) to accomplish the same goals. 

These have been very important objectives for some crypto traders for a while, but the need for speed and energy efficiency became even more obvious after the huge gas fee spikes that coincided with ApeCoin’s Otherdeeds launch

This historical event has brought momentum back to the crypto space and with it more appetite for risk as well. That’s where meme coins into play. 

You might recall that Elon Musk once sent Dogecoin on a tear by tweeting about his support for the coin… 

Well, Musk recently reiterated his support for DOGE, even after Tesla Inc. (NASDAQ: TSLA) reportedly sold its Bitcoin holdings

How to Capitalize on the Momentum

  • Keep your eyes on sector leaders. Bitcoin broke $25,000 over the weekend and Ethereum broke $2,000. Watch for new highs on high volume.
  • Follow trendsetters. If Elon Musk impacted DOGE once, he can do it again. Pay attention to further endorsements he might make — even better if they’re on Twitter. 
  • Remember that sympathy plays are popular because they tend to be cheaper/easier for smaller traders to jump into. SHIB is a sympathy puppy for DOGE. The sprightly coin jumped twice as high (by percentage) over the weekend and rumor has it there’s a Shibu-Inu game in the works!
  • The current resistance for DOGE is around the $0.82 key level and around $0.000017 for SHIB. Watch for breaks past those highs!
  • Ethereum’s Merge is projected to finish on September 15 or 16. Expect this to be a ‘buy the rumor, sell the news type of event. Look out for any potential date changes or delays in this extensive project. 
  • Keep in mind that if you miss the bulk of a run-up, or it feels too overextended for you, there are always dip buying opportunities once they come crashing down and new buyers jump in.

Conclusion

Momentum’s back in small caps and in crypto. Now’s the time to put your best plans into action. 

Those of us in this chat room jump on opportunities as they arise. We keep each other in the know and Bryce and I mentor you on what you don’t know. 

It’s the best place to stay up-to-date on the markets and expand your trading skills at the same time. You don’t have to take time out to learn. Find out how you can grow your trading account along with your trading chops now

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