Cryptic ball: saturday night hype.
What a weekend! Just like we told you Thursday, it was likely that doge was going to be aggressively shorted during Elon Musk's awkward hosting of Saturday Night Live. And our prediction was right. Furthermore, we also clearly told you that as long as bitcoin and ether were to stay above $53k and $3.1k, respectively, then a generalised dump wouldn't be warranted, which also didn't happen as expected.
So, as usual, we're gonna breakdown what happened so you can better learn how to interpret similar situations in the future:
- In a typical buy the rumour, sell the news fashion, dogecoin reached an all-time high twelve-hours before the show started.
- Then, when Elon came up on stage, many noobs bought - but there wasn't enough buying pressure to counter the obvious shorts that were being placed at the highest level (at least some institutions shorting will donate their profits).
- This created a 40% dump in a matter of hours, and doge hasn't recovered since, not even after Elon announced SpaceX accepted dogecoin as payment for the first commercial lunar payload ever!
Chart art: ether at $4.2k and all we talk is doge.
Market musings: it's like 101 Dalmatians, but more confusing.
However, as also hinted before, there are plenty of doge in the park. Literarily! We're talking about replicas of the meme coin, a trend which (mostly) started a couple of months ago and became a thing a couple of weeks ago. These coins are going to the moon as rationality leaves this bull market. Such insanity is great if you got in early on a legitimate, decentralised project. But many people are getting scammed and falling victim to rug pulls and to smart contract scams.
So, if you're considering going wild, make sure you feel comfortable losing all your money and seriously DYOR (do your own research) for every project. You can also use TokenSniffer to mitigate the risk of falling prey to a contract loophole, but learning Solidity is the only sure way of feeling safe - and even then so much sh*t can happen. Lastly, get familiar with all kinds of exit schemes in this great guide!
Visual block: less leverage, more sh*tcoin trading.
Three things: memes don't have fundamentals
- Curious about the fundamentals behind bitcoin? Check Glassnode Insights great This Week On Chain visual report!
- Curious about the fundamentals behind DeFi? Many argue fees are a good proxy, akin to cash-flows in TradFi. Check Fabian Klauder's great analysis here.
- Curious about Dfinity and its anticipated "The Internet Computer Project" which rivals AWS and just launched after 5 years in the making? Here you go!