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Dogecoin (DOGE) Pump Once Again Indicates Collapse of Crypto Market

Fri, 08/19/2022 - 15:22
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Gamza Khanzadaev
DOGE pumps can now be classified as omen for crypto market downfall
Dogecoin (DOGE) Pump Once Again Indicates Collapse of Crypto Market
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The pump of memecoins like DOGE or SHIB a couple of days ago was like another funny phenomenon in the stagnating crypto market. But now it seems to be no time for jokes. The fact is that this event once again marked the fall of the crypto market, and it seems that now it can be considered a full-fledged regularity.

In one year only, starting from last August, each Dogecoin pump by more than 20% led to the collapse of the entire crypto market within a very short period of time. This time, the omen did not spare SHIB either, as it seems to have managed to strengthen its position in the sector and impose its fight on DOGE during the year.

Source: TradingView

DOGE tragicomedy

It is a funny twist of crypto fate that many people associated the excessively active growth of such cryptocurrencies with the fact that money, optimism and bullish sentiment are coming back to the market. However, it turned out to be different, and if you paid enough attention, you would notice the opposite.

Nevertheless, one cannot say that every such 20% or more pump would mean the further collapse of the market. There are exceptions, especially in such a high-risk asset class. At the same time, this observation once again confirms the postulate that it is better to wait out the green candles and open positions when "there is blood in the streets."

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.