Saturday, September 25, 2021
HomeNewsDogecoin remains volatile: Memecoins under pressure

Dogecoin remains volatile: Memecoins under pressure




Dogecoin (DOGE) and Shiba Inu (SHIB) are sensitive to trends in the crypto market. Investments are risky due to the immense volatility.

Who could have guessed? While the draft horses of the Bitcoin market – above all Bitcoin (BTC) – focus on the moon again, the fun coins start to slide. Both Dogecoin (DOGE) and Shiba Inu (SHIB) have lost around four percent of their share prices within the last 24 hours. Doge, for example, was trading at 0.265 US dollars (USD) at the same time yesterday and was around two cents lower at the time of going to press: 0.245 USD.

It looks similar at SHIB. At the time of writing, a unit of the second largest memecoin costs $ 0.00000775, significantly less than yesterday.

Volatility in both directions

On the other hand, the Doge performance exceeds that of top coins such as BTC in the longer term. After all, the price of the most popular of all dog coins rose by 24 percent in the last seven days; Bitcoin’s is “only” around nine percent up.




What does that tell us? Memecoins like DOGE and SHIB have an inherently higher volatility than established coins and are therefore riskier investments by definition.

If you put your money in Elon Musk’s favorite coin, you can win big but also fall low. How far the hype about coins without fundamental use can go, shows a look at the past DOGE run, which was absurd even for crypto standards. Because between April 6th and May 8th of this year, Dogecoin rose from the local floor at $ 0.059 to $ 0.681. The coin with the Shiba Inu in the logo achieved a price performance of a breathtaking 1,054 percent in about a month.

But timing bull runs like this is hardly possible and, in addition to a reliable feeling for trends in the crypto market, you need one thing above all: luck. Because if you jump on the hype train too late, you risk not only a blue lip, but total loss. Since hitting the local top at $ 0.68, DOGE has seen a painful 63 percent correction. For comparison: Ether (ETH) fell by only 25 percent in the same period today.

The top coins may generate more conservative returns (which in the crypto market can still mean a doubling of the price within a few months). But they also correct less extreme. Bitcoin’s volatility, for example, was last at 3.5 percent according to data from buybitcoinworldwide.com – and the trend is falling.

In the end, the bellwether on the crypto market – preferably Bitcoin and Ether – still dictate the direction. Altcoins such as Dogecoin and Shiba Inu follow this rhythm – but sometimes drive the general trend into the absurd. Investments in memecoins are therefore not for the faint of heart.



Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending News

Recent Comments