Founder of Dogecoin discusses what to expect from still-bearish market
Billy Marcus, also known as “Shibetoshi Nakamoto”, the founder of Dogecoin, explains what to expect from the still bearish market. In response to Dogecoin user “Greg”, who asked how long the bear market might last, the DOGE co-creator said “sometimes there are dead cat bounces before the hopes and dreams not be crushed again”.
A dead cat bounce is a small, temporary increase in an asset’s price that is followed by the downtrend’s continuation.
A bear market resulted from what began this year in the cryptocurrency market as a series of “risky” selloffs fueled by the Federal Reserve’s aggressive monetary tightening stance. Many alternative cryptocurrencies also fell, with Bitcoin losing around 70% of its value from its all-time high.
In its short existence, cryptocurrency has experienced numerous significant dips, known as “crypto winters” and referred to by the rest of the financial world as “bear markets.” Similar opinions on the bear market are also expressed by University of Texas finance professor John Griffin. “There may be some bear rallies, but I don’t see a catalyst to reverse the cycle anytime soon.”
Dogecoin up 30% in the past week
Dogecoin rebounded from a low of $0.04 on June 18 and has been steadily rising since then. The cryptocurrency meme is set to mark its fifth straight day of positive action since June 23.
The bulls are making a pass at the daily MA 50 barrier at $0.081. A break above that mark might resuscitate a fresh upside move that might target the $0.12 level next. At the time of publication, Dogecoin was changing hands at $0.07, up 10% in the last 24 hours and up 30% in the past week. It is also outperforming the top 10 cryptocurrencies in daily gains.
According to data from IntoTheBlock, the Dogecoin whales, or large holders, are on the move, with large transactions up nearly 118% in the past 24 hours. Large increases in transactions are usually related to increased activity of whales buying or selling, and a transaction is usually over $100,000.
The profitability of the meme cryptocurrency has also increased to 54%.
