Memecoins and its fluctuations in cryptocurrency trading Flash news details

On March 22, 2023, at 14:30 World time, the cryptocurrency market witnessed an important event related to the mechanics, especially Dujakin (Doug) and Shaib (SHIB), which witnessed sharp price movements indicating the nature that is like gambling of these assets (Source: CoinmarketCap, 2023). Dog increased by 15 % in a 30 -minute window, reaching a price of $ 0.095 from $ 0.082, while SHIB witnessed a 12 % increase from 0.0000105 to 0.0000117 dollars (Source: Tradingview, 2023). These movements were played by a tweet from a high -level influencer, Elon Musk, who published Mimi related to DOGE at 14:00 UTC (Source: Twitter, 2023). This event emphasizes the speculative nature of the products and its ability to depend on social media, as the market analysts (Source: Forbes, 2023) noted. DOGE trading volume increased to 10 billion dusks during the first hour after Twitter, an increase of 200 % over the size of the previous watch of 3.3 billion dusks (Source: Coingecko, 2023). Likewise, the sheep trading volume increased by 150 %, from 1.2 trillion grains to 3 trillion graying during the same period (source: Coingecko, 2023). These sized nails highlight the flow of rapid liquidity driven by the effect of social media, a feature that is often associated with gambling instead of traditional investment (Source: Bloomberg, 2023). The event also affected the broader encryption market, with Bitcoin (BTC) and ETHEREUM (ETH), which suffers from minor fluctuations. BTC has seen a 1 % increase from $ 27,000 to $ 27,270, while ETH increased by 0.8 % from $ 1750 to $ 1763 (Source: Coinmarkcap, 2023). The relationship between the mitmen fluctuations and the main encryption assets indicates an indirect effect, as high fluctuations in the mines can affect the morale of the comprehensive market (Source: Cryptoquant, 2023). The scales on the series increase this analysis, as the active DOGE addresses increased by 30 % to 130,000 from 100,000, and active SHIB addresses increased by 25 % to 50,000 from 40,000 (Source: Glassnode, 2023). These scales indicate an increase in the activity of speculation driven by social media, which enhances the gambling -like behavior associated with Memecoins (Source: Coindsk, 2023).

Trading effects of this event are important for each of the short and long -term merchants. Fast price movements and volume spaces indicate that merchants should be careful in introducing the situations based on the fluctuations that depend on social media, as these movements can be reflected at the same speed (Source: Investopedia, 2023). For example, within two hours of the initial increase, the Dog’s price was 5 % to $ 0.090, and the gray price decreased by 4 % to 0.0000112 (Source: TradingView, 2023). This rapid correction emphasizes the dangers of retaining positions based on short -term nails, which are often driven by speculation circulation instead of the basic value (Source: Bloc, 2023). The event also highlights the importance of monitoring social media feelings as a leading indicator of Memecoin price movements. Traders who benefit from morale analysis tools can take advantage of these short -term nails, despite the high level of risk (source: Cointelegraph, 2023). In addition, the relationship with major encryption assets such as BTC and ETH indicates that merchants should be aware of the potential effects at the market level of mechanical fluctuations. For example, the sharp decrease in Memecoin prices can lead to broader market sales, as was observed in previous cases (Source: Cryptoquant, 2023). Therefore, risk management strategies, such as the status of stopping orders and various accessories, are very important to move in the volatile Memecoin market (Source: Forbes, 2023).

From the perspective of technical analysis, the effect of the event can be evaluated on DOGE and Shib through different market indicators. DOGE RSI rose to 85 during the peak of the mutation, indicating the excessive conditions purchased, before declining to 70 within two hours (Source: TradingView, 2023). Likewise, RSI SHIB 82 and then decreased to 68, indicating a rapid shift from excessive conditions to neutral conditions (Source: TradingView, 2023). These RSI movements indicate the possibility of a price correction after a rapid increase, which is a common pattern in Memecoin Markets (Source: Coindesk, 2023). DOGE’s MACD is a bullish intersection at the time of the increase, with the MACD line crossing the top of the signal line, but this is the opposite quickly when correcting the price (Source: TradingView, 2023). SHIB’s MACD also showed a brief upward signal before returning to the declining direction, highlighting the volatility and short -term nature of these price movements (Source: TradingView, 2023). The trading volume data during the event also supports the analysis, as the size of the DOGE reached a peak of 10 billion doug and the size of the graying, which reaches 3 trillion grains, both of which are much higher than the average daily sizes of 4 billion doug and 1.5 trillion graying, respectively (source) Source: Coingecko, 2023). Event (Source: Glassnode, 2023). In general, the event emphasizes the need of traders to deal with memeins with caution and use strong risk management strategies to navigate the inherent fluctuations (Source: Investopedia, 2023).