Dogecoin, one of the most popular meme-based cryptocurrencies, hit a low price point over the weekend. This drop has been attributed to the prevailing bearish trend that seems to be affecting the cryptocurrency industry at large. Dogecoin, which reached a high of $0.08435 on Friday, dropped to $0.07752 on Saturday, marking the lowest point it had reached since April 3rd. This decline meant that Dogecoin fell below a long-term support point at $0.080, which had been holding up the cryptocurrency at the time. However, from the chart, Dogecoin appeared to have found a new floor at near the $0.0760 mark, which comes as the relative strength index (RSI) also consolidated. Currently, the index is tracking at 43.21, which is close to a support point at 42.00. The next visible resistance level looks to be at 51.00, and should bulls begin to move towards this, Dogecoin will soon be back above $0.090.
Shiba Inu, another meme coin, was in the red on Saturday as well, slipping to a multi-week low of $0.00001012 to start the weekend, less than 24 hours after trading at a peak of $0.00001064. This is the lowest level Shiba Inu has hit since March 11th, and comes following a four-day losing streak. The recent mini-bear run has now pushed the 10-day (red) moving average to the brink of a downward cross with its 25-day (blue) counterpart. As of writing this, Shiba Inu continues to hover close to an area of support at the $0.00001020 level. Price strength is also marginally above a floor of its own at 37.00.
The cryptocurrency market has witnessed massive price drops in recent times, with almost all cryptocurrencies facing a bearish trend. This trend can be attributed to increased market volatility, uncertainty, and a general pessimistic outlook of investors over the cryptocurrency industry as a whole. The price dip in meme-based coins like Dogecoin and Shiba Inu comes as no surprise as these cryptocurrencies generally tend to mirror the overall market trend.
In times like these, it is important for crypto investors to keep a cool head and stay focused on the long-term prospects of the industry. Cryptocurrencies and blockchain technology are here to stay and will continue to evolve and change the world as we know it. Despite recent price drops, there are still many reasons to be bullish on cryptocurrencies, including the growing adoption and integration of crypto by major financial institutions and corporations globally.
For instance, investors are turning to Bitcoin as an alternative investment to hedge against inflation. This move has been occasioned by the massive stimulus packages introduced by governments worldwide, which are expected to lead to a surge in inflation rates. Additionally, the growing popularity of decentralized finance (DeFi) platforms and non-fungible tokens (NFTs) is expected to drive an influx of new users to the crypto market, thus increasing market liquidity and improving the overall adoption of digital assets.
In conclusion, while the recent dip in Dogecoin and Shiba Inu prices is a cause for concern among some investors, it is important to look at the bigger picture and not get carried away by short-term market trends. Investors who are willing to hold on to their cryptocurrency investments for the long term are set to reap huge rewards as the crypto market continues to mature and more use cases for digital assets are discovered. As always, investors need to exercise caution and do their due diligence before investing in any cryptocurrency.
