According to analysts, Dogecoin dealers are reinvesting gains in large-cap altcoins.

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According to experts, the rally in LTC, BCH, and ETC may be attributed to DOGE traders transferring profits into Robinhood-listed altcoins.

Every cryptocurrency bull market has at least one unexpected trigger that emerges from nowhere to excite markets and ignite large trading volumes, propelling overall market capitalisation to new levels.

The 2021 bull market is no different, and one of the main drivers of acceleration this year has been the explosive success of Dogecoin (DOGE), which has made waves in conventional and alternative financial circles as its price has surged to fresh all-time highs in recent months.

DOGE/USDT 4-hour chart. Source: TradingView

With such rapid growth in a few short months, it’s common for traders to make movements that help lock in returns before looking for the next potential mover to invest in.

DOGE’s market behaviour has piqued the interest of Bollinger Bands inventor Jon Bollinger, who tweeted on May 3rd, “$Dogeusd put in a top, fell by 65 percent, and is now knocking on the door again while $dogebtc is breaking out.” Simply incredible pricing action.”

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Dogecoin was priced at $0.40 at the time of the tweet, but it has since risen by more than 80% to a new all-time high of $0.69. Following today’s heavy rally, Bollinger sent the following tweet to DOGE traders:

 

And it appears that some traders had similar thoughts or took Bollinger’s words to heart on May 5, as the price of DOGE experienced a pullback of 25% before recovering near the $0.60 level.

Large-cap altcoins benefit from Dogecoin’s momentum

Several observant traders, including Digital Currency Group founder Barry Silbert, noted that much of DOGE’s trading operation has occurred on the Robinhood trading app, and that other cryptocurrencies available on the platform can benefit from traders rolling gains from DOGE into slower performing cryptocurrencies.

This proved to be a foresighted viewpoint, as all of the big cryptocurrencies available on Robinhood saw double-digit gains on May 5, while the price of DOGE fell by 25%.

Ethereum Classic (ETC) has been one of the most significant winners of the fund transfer, which has helped the Ethereum fork to a new peak of $100 on May 5. During the same time frame, Bitcoin Cash (BCH) and Bitcoin SV (BSV) saw gains in the 25%–30% range.

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Although the percentage increase in the price of Litecoin (LTC) has been less than that of the other tokens listed on Robinhood, the altcoin’s 15% rally has driven it to a new multiyear high of $351. This is less than 7% lower than LTC’s previous all-time high of $375.

 

LTC/USDT 4-hour chart. Source: TradingView

With DOGE still trading above $0.58 at the time of writing, and anticipation for Elon Musk’s appearance on the comedy sketch show Saturday Night Live building, the bullish price action for LTC and the other cryptocurrencies available on Robinhood which continue as retail traders new to the crypto market flock to the famous meme coin.

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