Crypto

Dogecoin Forms a Hugely Important Pattern: Crypto Market Review, November 3

Arman Shirinyan

Markets are recovering from yesterday’s rate hike, and there’s room for memetokens

Contents

  • Dogecoin Formation Model
  • Shiba Inu stays trapped

Despite the negativity we have seen in the cryptocurrency market over the past few days, the assets we profiled in our last report avoided the market’s fall, which could give investors some time before the fall.

Dogecoin Formation Model

After the explosive growth, Dogecoin entered the expected consolidation at the top, with the price of memecoin not moving in any direction. Since October 29, the price of the asset has not changed from the pace we have seen before.

Charter of the Doges
Source: TradingView

As the asset’s volatility decreases and the price moves sideways, DOGE is forming a new pattern that could become the much-needed cooldown before. The ascending channel is not something you would typically see after a volatile price spike.

However, any kind of lower volatility for Dogecoin is a positive factor that would give investors hope for a possible continuation of the rally for the foreseeable future. However, the price performance we are seeing today invalidates the formation we mentioned in our previous market review.

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From a fundamental point of view, Dogecoin investors are most likely waiting for an announcement of DOGE implementation as a payment instrument on Twitter, given the Elon Musk takeover.

However, Musk neither confirmed nor denied the use of Dogecoin as a way to pay for account confirmation on Twitter. Unfortunately, if the social platform does not accept DOGE in the near future, it will most likely go back to what it has been doing for over two years: moving sideways with extremely low volatility, until Musk gives hope to the investors.

Shiba Inu stays trapped

As Dogecoin enters consolidation, shiba inus still struggling in the market, without finding the right path as it remains in a corridor between the 200 and 50 day moving averages. However, the presence of purchase support is a factor that we cannot and must not ignore.

The fact that the token is moving in the corridor shows that investors have not yet decided in which direction the cryptocurrency market will turn. Given Shiba Inu’s correlation to the market, the large-cap movement will most likely be the main driver of increased SHIB volatility.

The decrease in trading volume is another factor that we need to take into consideration. As traders exit the market, Shib’s correlation with large caps will increase significantly since market makers will be the only group of traders to move Shiba Inu.

The latest rate hike was not a positive for memetokens and risky assets like Shiba Inu, so 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 right after the Fed shows its desire to continue to tighten monetary policy.

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