Are we getting into Doge territory?
Dogecoin, The altcoin that started as a practical meme in 2013 has been making headlines during labor day weekend (If you are not familiar with Dogecoin, read this for a more in-depth background). During the weekend, the meme currency has caught fire gaining a whopping %250 in less than 72 hours. The price increase was largely driven by news of a project dubbed the ‘Dogeetherum bridge’. The idea, spread by some crypto media websites and cryptotwitter, was that this “new project” is a way to connect Dogecoin to Ethereum and allow Dogecoin to have some of Ethereum’s features, including the ability to host smart contracts.
However, the truth of the matter is somewhat different than what most people have been spreading. The original project was planned as a fork of Ethereum named Dogeetherum (DOGX) and was supposed to launch back in April. The idea was to grant DOGX tokens to users based on their DOGE holdings on the DOGE main chain. The project itself never really launched and as far as we could tell, the source code itself wasn’t even released. It seems that there are signs of the project revival, but the actual effect of the news on the price, do not even remotely reflect their actual meaning.
Market sentiment is changing
The end conclusion of this story isn’t about the fact that rumors and fake news are manipulating crypto prices. We already know that, and that’s not going to change, at least for another boom-bust crypto-market cycle. But what is interesting is the effect that such news has on the price of a coin.
During the bear market, no matter what good news you would spray on any coin, token or even Bitcoin, and it seems that almost nothing was to actually move the needle. Even when the SEC official said they will not consider Ethereum as a security, a statement that has huge first, second and third order consequences on the entire industry, ETH jumped up and straight back down to hit a new yearly low just a week later.
But now, it seems that every piece of news, no matter the source, the potential relationship between the news and the price of the token or how ridiculous it might be, the prices are starting to respond positively and the market is going back to a volatile territory, just like in late 2017.
Does this mean that the next bull market is around the corner? Not yet. But, taking off from where we stopped our last analysis in the previous week, the positive sentiment seems to be gaining momentum and we are on the 19th day of the market uptrend. If things continue on the same path for another week or so, we would be much more optimistic about the near future of the market.
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