Thursday, May 23, 2024

DOGE Price Alert: Brace for Volatility with New Futures on Coinbase.

Due to the potential for extreme volatility as the Bitcoin halving draws near, a Dogecoin (DOGE) contributor advised the DOGE community on Thursday to refrain from trading futures. The alert is sent just before Coinbase, which has received approval from the Commodity and Futures Trading Commission (CFTC), is about to start trading the Dogecoin futures contract.

Derivatives for Dogecoin may put traders at considerable risk.

After a broad market consolidation, Dogecoin and several other popular meme coins have been trading sideways over the past week. The half of Bitcoin is creating a lot of anticipation on social media, and traders are anticipating another meme frenzy, but this hasn’t shown up in the price action as of yet.

As the approaching halving is expected to spark a bull run, Dogecoin contributor @Mishaboar cautioned in an X post on Thursday that “things will get weird (in any direction) while people think they can easily predict the market.”

He gave instances of how, in contrast to earlier cycles, the entry of new market participants, their strong liquidity flow, and rising trade volume have altered market dynamics. High-risk cryptocurrency trading is made even more difficult by leverage and derivatives, “and many players in that arena look at Doge as one of the ultimate playgrounds,” according to @Mishaboar.

Coinbase will list derivatives for PEPE and DOGE.

The warning and Coinbase’s announcement on Thursday’s blog that it would begin offering Dogecoin futures on April 29 following CFTC approval earlier in March coincide. As a result, more US traders will be able to speculate on the price movement of DOGE derivative products as they become more exposed to them.

Coinbase announced another meme coin update within a few hours after announcing DOGE futures, saying on April 18 it will be adding support for PEPE perpetual futures on Coinbase International Exchange and Coinbase Advanced. PEPE’s price surged after the announcement, rising by almost 6% in the previous day.

The waning meme fever may resurface if more companies utilising meme tokens continue to hit the market.

A trader who purchased the APU meme token for $9,000 worth of ETH saw a gain of more than 69,500%, according to Lookonchain data. The current value of his interests is $6.27 million.

Trading meme coins is quite risky because of the extreme fluctuation of their price and the possibility that some of the tokens are complete scams. It’s crucial for investors to evaluate their risk tolerance and conduct thorough research before making an investment.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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