Markets are recovering from yesterday’s rate hike, and there is room for memetokens
- Dogecoin forming pattern
- Shiba Inu remains trapped
Despite the negativity we’ve seen in the cryptocurrency market over the past few days, the assets we profiled in our latest report have avoided the dip in the market, which could give investors some time before the dip.
Dogecoin forming pattern
After the explosive growth, Dogecoin entered the expected consolidation at the top, with the price of the memecoin not moving in any direction. Since October 29, the price of the asset has not changed compared to the pace we saw before that.
With the volatility of the asset decreasing and the price moving sideways, DOGE is forming a new pattern that could become the cooling it so badly needed before it. The ascending channel is not something you would normally see after a volatile price increase.
However, any kind of volatility decrease for Dogecoin is a positive factor that will give investors hope for the possible continuation of the rally in the foreseeable future. However, the price performance we are seeing today invalidates the formation we mentioned in our previous market review.
From the fundamental point of view, Dogecoin investors are most likely waiting for an announcement of implementation of DOGE as a payment instrument on Twitter, considering Elon Musk’s takeover.
However, Musk did not confirm or deny that Dogecoin is being used as a way to pay for account verification on Twitter. Unfortunately, if the social platform does not adopt DOGE in the near future, it will most likely return to what it has been doing for over two years: moving sideways with extremely low volatility, until Musk gives investors hope again.
Shiba Inu remains trapped
While Dogecoin enters the consolidation, Shiba Inu continues to struggle on the market, unable to find the right path as it remains in a corridor between the 200- and 50-day moving averages. However, the presence of buying support is a factor that we cannot and should not ignore.
The fact that the token is moving in the corridor shows that investors have not yet decided which way the cryptocurrency market will turn. Considering Shiba Inu’s correlation with the market, the movement of large caps will most likely be the main fuel for SHIB’s volatility increase.
The decrease in trading volume is another factor we need to consider. As traders exit the market, Shib’s correlation with large capital will increase significantly, as market makers will be the only group of traders moving Shiba Inu.
The most recent rate increase was not a positive factor for memetokens and risk assets such as Shiba Inu, and therefore the continuation of the trend is questionable. Meme assets remain the most volatile parts of the cryptocurrency market, which is why investors are likely to avoid taking unnecessary risks just after the Fed has shown its desire to continue tightening monetary policy.