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Dogecoin jumps 44% in one day as traders rotate Shiba Inu profits into DOGE

The DOGE price rally appeared after Shiba Inu briefly flipped Dogecoin to become the ninth-largest cryptocurrency by market capitalization.

Dogecoin (DOGE) soared on Oct. 28 amid massive capital rotations out of its top meme coin rival’s market, Shiba Inu (SHIB).

Notably, DOGE’s price rallied by a little over 44% to reach its intraday high of $0.3449. Its gains appeared in contrast to SHIB’s losses in the same period. On the other hand, the so-called “Dogecoin killer” dropped almost 28% to log an intraday low at around $0.000057; in the same hour, DOGE printed its daily top.

SHIB/USD vs. DOGE/USD daily price chart noting inverse correlation. Source: TradingView

The sudden price rally also pushed DOGE’s market capitalization to over $40 billion, a mettle that Shiba Inu achieved hours before, with the two cryptocurrencies now neck-and-neck and currently battling for the ninth place by market cap.

Traders started flocking into Dogecoin markets hours after Elon Musk, CEO of Tesla and SpaceX, posted a new tweet about the meme cryptocurrency. 

Musk’s earlier supportive tweets prompted DOGE to climb by more than 1,500% in the first five months of 2021.

Long DOGE, short SHIB

Shiba Inu rallied exponentially heading into Q4, rising by around 1,200% in October on hopes that it would gain a listing on Robinhood, a United States-based zero-fee trading app, and its foray into the emerging decentralized finance and nonfungible token sectors with new product launches.

Nonetheless, SHIB’s supersonic bull run has also made it overvalued, based on some key metrics, notably the Relative Strength Index. Thus, it appears that spot and derivative traders have decided to secure and/or rotate their profits. 

Su Zhu, co-founder, CEO and chief information officer of fund management firm Three Arrows Capital, noted earlier on Thursday that traders rotated their easy-to-short Shiba Inu perpetual swap profits — as SHIB topped out at $0.00008854 — into the Dogecoin perpetual market.

The former Deutsche Bank trader suggested that DOGE can rally toward $0.88 next should traders rotate profits from SHIB to Dogecoin. 

Around $20.8 million DOGE rekt

Dogecoin’s price moves also caught derivatives traders off-guard as they lost about $20.8 million in total liquidations across the previous 24 hours. Around $18.17 million worth of those liquidations emerged out of leveraged long bets after DOGE’s price dropped to its weekly low of $0.2179 on Wednesday.

In contrast, the ongoing 12-hour timeframe saw bears taking more losses than bulls, with $8.9 million worth of bearish Dogecoin bets getting liquidated against $5.22 million worth of bullish bets concerning the same token.

DOGE total liquidations across all exchanges. Source: Bybt 

On the whole, however, Dogecoin traders were the majority short in the previous 24 hours, with FTX and OKEx users turning out to be exceptionally bullish, with 58% and 77% of their net positions skewed long, respectively.

A sudden bearish reversal in the Shiba Inu market also led to SHIB liquidations worth $31.41 million, the third-highest among all cryptocurrencies in the previous 24 hours.

Related: Shiba Inu risks drop with SHIB's 574% October's price rally near exhaustion

PostyXBT, an independent market analyst, warned about excessive leverages in both SHIB and DOGE markets. 

“Play spot and not leverage,” he said, adding, “The volatility could quite easily wipe out before a big move in intended direction.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Shiba Inu could surpass Dogecoin after a 700% SHIB price rally in October

In comparison, Dogecoin’s October gains so far have come out to be a little over 8%.

Shiba Inu (SHIB) continued its march upward on Oct. 27, with its price hitting a record high of nearly $0.000060 before correcting lower.

SHIB rallied by more than 25% to an all-time high of $0.00005959, crossing above its previous all-time high of 0.00005000, according to data from Binance. The latest move upside pushed the token’s month-to-date (MTD) returns to approximately 726%, making it the fifth-highest grossing cryptocurrency entering the final quarter of 2021.

SHIB’s October gains had slipped to near 606% following a price correction from its record high, still higher than the rest of the top-cap crypto rivals, including Bitcoin (BTC), Ether (ETH), Cardano (ADA) and Solana (SOL).

Top five cryptocurrencies ranked according to their October gains. Source: Messari

Still, SHIB’s superior performance particularly stands out against its meme coin rival, Dogecoin (DOGE), whose MTD gains are currently only about 8%. Moreover, Shiba Inu’s market capitalization has now reached $22.1 billion — the 11th-largest — putting it right behind Dogecoin’s $31.53 billion in 10th place.

SHIB copying DOGE bull run?

Shiba Inu was launched in 2020 after taking heavy inspiration from Dogecoin, a 2013-born joke cryptocurrency fashioned after the Japanese dog breed. Eight years since its introduction, Dogecoin’s popularity emerged with its use as payments by sports teams, AMC theaters and as a speculative investment vehicle thanks to Tesla CEO Elon Musk’s social media endorsements of the token.

DOGE’s price underwent an incredible upside boom in the first five months of 2021, rising more than 15,000% amid a retail-led frenzy. In doing so, the king meme token reached its record high of $0.76 on May 8, only to correct by over 68% to trade around $0.23 at press time.

DOGE/USD daily price chart. Source: TradingView

Overall, Dogecoin went through extreme trends in the previous 12 months, starting with a long period of consolidation, eventually following it up with an extended bullish breakout and further by a massive price correction.

It appears Shiba Inu’s price trends in recent months took cues from Dogecoin’s consolidation and breakout phases, as the SHIB/USDT chart shows below.

SHIB/USDT daily price chart featuring Dogecoin’s three phases. Source: TradingView

A Dogecoin-like 1,500% price boom in the Shiba Inu market puts its long-term profit target near $0.00013500. Nonetheless, the fractal also warns about massive, periodical price corrections toward the 20-day exponential moving average support (the green waves in the charts above) as the price increases.

The overall Shiba Inu dominance in the cryptocurrency market has surged from 0.16% to 0.91% MTD. On the other hand, Dogecoin’s control on the market has reduced from 1.5% to as low as 1.20% in the same period.

SHIB price macro fundamentals

Joe Wiesenthal, editor at Bloomberg Markets, noted that Shiba Inu has “advanced smart-contracting capabilities,” making it better than Dogecoin.

“You can check out Shibaswap, a Uniswap-like decentralized exchange for the SHIB community. It’s got NFT, liquidity mining. All of it. Meanwhile, Dogecoin doesn’t have any of this right now.”

As Cointelegraph covered, the recent SHIB price rally may have also taken cues from the Monday launch of the Shiboshis Social Club. This online community rewards exclusive perks to people who own exclusive Shiba Inu-generated nonfungible tokens (NFT), dubbed Shiboshis.

As a result, retail appears to have been tailing Shiba Inu’s speculative bull run, with a recent study by Bacancy Technology showing that it received 2.8 million Google searches on average in 2021, the third-highest after Bitcoin and Ethereum.

In comparison, search volume of Dogecoin came as the sixth-largest.

Meanwhile, a petition on Change.org pleading with Robinhood to list SHIB tokens on its zero-fee trading app garnered over 500,000 signatures. Robinhood CEO Vlad Tenev said during the company’s earnings call Tuesday that Robinhood is considering adding new coins to the service portfolio, albeit without mentioning their names.

That may have pushed Shiba Inu’s price to its record high Wednesday, further signaling booming retail interest in the meme crypto. 

“Memes have value and have been an investible thesis in 2021,” Jonathan Cheesman, head of over-the-counter and institutional sales at crypto-derivatives exchange FTX, told Bloomberg, adding:

“Lower dollar-price tokens are attractive to retail.”

Related: Shiba Inu risks drop with SHIB's 574% October's price rally near exhaustion

But according to Ben Caselin, head of research and strategy at crypto exchange AAX, SHIB traders should tread ahead carefully due to excessive speculation, citing prior patterns that indicate that the token would likely “shed much of its value” as it gets challenged by other meme projects.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Adobe offers users the ability to verify NFT marketplace creations through metadata

The software company's Content Credentials can add an NFT creator’s wallet address and social media information to the metadata of tokens listed on the marketplace.

Many nonfungible token marketplaces are allowing digital collectors to identify artwork based on the wallet address of the creator through a partnership with software giant Adobe.

In an Oct. 26 announcement, Adobe said it would be partnering with major nonfungible token, or NFT, marketplaces including OpenSea, KnownOrigin, and SuperRare to allow users to verify the authenticity of the digital content. Adobe’s Content Credentials can add an NFT creator’s wallet address and social media information to the metadata of tokens listed on the marketplace.

"This partnership furthers our commitment to empowering users with more tools as we collectively rethink how we transfer digital goods on the internet,” said an OpenSea spokesperson. “Working in tandem with market leaders like Adobe and the growing NFT community, we will keep providing features to increase trust and transparency across the metaverse."

The feature will still seemingly have the option for NFT creators to remain pseudonymous, with them choosing to display crypto addresses linked to their online identity or full real social media profiles. Rarible, another marketplace offering Adobe’s digital verification system, said the feature would help “fight misinformation with attribution and verifiable truth of content.”

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According to data from DappRadar, OpenSea is the largest NFT marketplace by daily trading volume, reported as more than $50 million at the time of publication. SuperRare, Rarible, and KnownOrigin rank far below with roughly $1 million, $328,000, and $42,000 daily trading volume, respectively.

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Rarible and Adobe form partnership aimed at protecting NFT creators

The Adobe feature can add an NFT creator’s wallet address and social media information to the metadata of tokens listed on Rarible, helping “to fight misinformation with attribution and verifiable truth of content.”

Software giant Adobe is trying to make it easier for nonfungible token, or NFT, creators to prove they are the artists behind their work by linking social media profiles and crypto wallet addresses.

In a Tuesday announcement, NFT marketplace Rarible said it would be partnering with Adobe, allowing token creators to display the software company’s content credentials to verify the authenticity of the digital content. According to Adobe, this feature can add an NFT creator’s wallet address and social media information to the content credentials metadata of tokens listed on Rarible, helping “to fight misinformation with attribution and verifiable truth of content.”

As a member of Adobe’s Content Authenticity Initiative alongside the BBC, Getty Images, Microsoft and Nikon, Rarible will still seemingly have the option for NFT creators to remain pseudonymous, with them choosing to display crypto addresses linked to their online identity or full real social media profiles. The identity of the buyer behind the $69 million purchase of Beeple’s NFT in March remained anonymous until choosing to disclose their identity.

Related: Copyright infringement and NFTs: How artists can protect themselves

According to data from DappRadar, Rarible is the eighth largest NFT marketplace by daily trading volume, reported as $393,910 at the time of publication. However, the platform’s transaction volume has seen a significant decline since peaking at $2.5 million in April. OpenSea had more than $58 million in volume, putting it far above SuperRare, at $1.3 million.

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