Beware of key risks as LayerZero Mog Coin and Bonk prices soar
Monday saw a surge in the price of Bitcoin, crossing the $63,000 mark, as investors showed a renewed interest in high-risk assets. Ethereum Name Service (ENS) stood out as one of the top-performing altcoins, with all eyes on the upcoming ENSv2 upgrade. Another standout was LayerZero, which saw a significant increase to $3.6 following the recent airdrop launch, marking a 40% rise from its low last week.
Mog Coin, a prominent meme coin, hit an all-time high of $0.0000021, soaring over 200% from its June low. Bonk also experienced a notable uptick of more than 32% from its recent low, earning it the title of our chart of the week. Other altcoins like Dogwifhat (WIF), Immutable X (IMX), Fantom (FTM), and Bittensor (TAO) also saw impressive gains.
The resurgence of Bitcoin and altcoins was accompanied by a surge in trading volume, with daily volume spiking by over 45% to $53 billion, reaching its highest level since June 28th. While there was no specific catalyst for this rally, it is believed that investors adopted a risk-on attitude following the French election results, where Marine Le Pen’s party secured a victory that fell short of expectations.
In the aftermath, the US dollar index (DXY) dropped by 15 basis points, while global stock markets experienced gains. The French CAC 40 index surged by over 2%, and the German DAX index rose by 0.70%. In the US, futures tied to the Dow Jones and Nasdaq 100 index also showed positive signs.
Despite the positive momentum, there is a looming concern that the recent price rally of LayerZero, Mog Coin, and Bonk could be a dead cat bounce, a temporary recovery in a declining market. Bitcoin’s price action has been concerning, with patterns like a double-top formation at $72,000 last month and its failure to surpass that level since March 27th. Additionally, Bitcoin remains below the 50-day and 100-day Exponential Moving Averages (EMA), indicating bearish control, and has recently formed a bearish pennant chart pattern.
As a result, there is a possibility of Bitcoin dropping below $60,000 in the coming week, which could trigger a bearish trend in altcoins like MOG, BONK, and ZRO, as these tokens often follow Bitcoin’s price movements closely.
