Investors’ optimism is back in the cryptocurrency markets. All major coins generated double-digit gains over the week. Market sentiment returned to the territory of greed. And meme coin bulls got ready to take off.
What’s going on with the most prominent meme coins, and how can this be useful for investors?
SHIB Leads the Market
SHIB jumped nearly 18% on Monday, soaring from $0.00002493 to $0.00002927 in less than 24 hours. With nearly $3.8 billion trading volume during the same time, SHIB regained the $15 billion market cap and returned to the position of 15th biggest crypto. But Shiba is still 67.7% down from its all-time high.
The massive $4.8 million liquidations of SHIB contracts during the past 24 hours is considered a key trigger of the recent rally. The major part of liquidations came from the short sellers. This means the positions of bearish bidders were closed automatically, pushing the asset price higher.
What to Expect?
SHIB first needs to break through the $0.00002890 resistance area to gain strength for a heavy pump to the next target of around $0.00003340.
Keep in mind that whales are also circling on SHIB’s territory. An anonymous whale acquired more than 200 billion Shiba Inu tokens ($4.9 million) last week.
Elon Leads the Dogecoin
DOGE jumped by more than 7% from $0.1422 to $0.1523 on Monday continuing the uptrend, which started two weeks ago. In 7 days alone, the pioneer meme coin accumulated over 25% growth and currently ranks as the 12th biggest crypto with a $19.7 billion market capitalization.
The key reason for yesterday’s Doge surge was, no surprise, Elon Musk. The Tesla CEO moved the asset up again after hinting on Twitter about his “serious thoughts” on creating a social media platform to support “free speech” and most possibly Dogecoin.
One of the best things about Elon Musk either buying Twitter or starting his own platform is you know there would be a Dogecoin tip jar!— Steven Steele (@MrStevenSteele) March 26, 2022
The market reacted accordingly, but it wasn’t just the retail traders that jumped into the hype. Large size Dogecoin transactions, or the ones that exceed $100K, spiked by 133% on Monday, suggesting that whales might be back for the meme coin. As seen from the data on IntoTheBlock, 66% of all DOGE circulating supply is concentrated in the hands of large holders.
What to expect?
For the near future, the sentiment around Dogecoin will probably remain positive, at least until DOGE tests its $0.1650 resistance level. If the coin breaks the area, the 11% rally to $0.1845 is technically possible.
However, day traders should not forget the upcoming changes in India’s cryptocurrency tax policy that come into effect this Friday, April 1st. One of the biggest cryptocurrency markets is going to charge a 30% tax on profits from any digital asset. The move is expected to bring at least short-term turmoil to cryptocurrency markets.