Momentum trading among smaller cryptocurrencies know as “altcoins” is rising in the current market volatility, according to data from platform PowerTrade.
Traders and investors are reportedly hedging their bets and speculating on opportunities with cryptocurrencies such as Dogecoin (DOGE), XRP (XRP), and Solana (SOL). Trading volume in XRP options soared to over $5 million in the last week as the market see-sawed between gains and losses.
PowerTrade says most of the trading activity remains concentrated in short-dated expirations, which one would expect given the current level of volatility in crypto and stocks. The action suggests that investors are anticipating significant short-term price movements and are trying to capitalize on sharp price swings up and down.
Momentum Trading
Amid the current volatility, XRP’s price fell to a five-month low of $1.61 earlier this week only to bounce back to $2, according to market data. Traders are betting on whether an asset such as a cryptocurrency’s price will rise or fall in a short period of time.
The current market ups and downs have enabled traders to bet on, and capitalize from, short swings in prices. PowerTrade says the current activity shows people are engaging in short-term “momentum trading,” which are bets on quick price moves among the likes of Dogecoin.
The price of DOGE is currently at $0.16, having declined 52% on the year.
Is DOGE a Buy?
Most analysts don’t offer ratings or price targets on Dogecoin, so instead we’ll look at the cryptocurrencies three-month performance. As one can see in the chart below, the price of DOGE has fallen 53% in the last 12 weeks.
