The value of all the leading cryptocurrencies fell precipitously over the course of the previous weeks due to a catastrophic crypto crash. While other cryptocurrencies have recovered from their price drops, and two well-known cryptocurrencies still suffer the effects of the recent meltdown, Shiba Inu and Dogecoin prices are still at depressed levels.
The Price of Bitcoin Begins to Rise
The price of bitcoin remained strongly above the $22,500 support region. Above the $23,000 resistance level, BTC established a base and began a new upward trend.
The price rose over the $23,200 resistance level and the 100 hourly simple moving average thanks to the bulls. Even after breaking through the $23,500 resistance area, the price climbed to a new yearly high of $23,950. Hourly chart of the BTC/USD pair, there was a break above a significant contracting triangle with resistance close to $23,145 throughout the uptrend.
Near the $23,800 mark, there is immediate resistance. The next significant barrier is located close to the $24,200 area, above which the price may begin a sharp ascent. In the aforementioned scenario, the cost might increase to around $25,000. The $25,500 level might serve as the next point of resistance. The price of bitcoin might reach $26,000 if there are any additional gains.
Some analysts claimed that Elon Musk, the CEO of Tesla (TSLA), is partially responsible for price movements in the tokens due to his tweets, a factor that has caused investors to grow increasingly cautious.
According to Egor Volotkovich, director of EVODeFi, a cross-chain solution, the change in SHIB is “a far cry from the movements it makes while responding to Elon Musk’s tweets.” This pattern has revealed how strongly Musk’s unanticipated exposure is relied upon by meme coins like Shiba Inu, Dogecoin, and others to generate positive growth for its investors.
The sentiment was shared by other market watchers as well. Fuad Fatullaev, CEO of NFT platform WeWay, stated in a Telegram chat that “both cryptocurrencies have a very high dependence on Elon Musk’s tweets over time.”
However, according to Fatullaev, Shiba’s metaverse might expand soon. “We may anticipate that the metaverse project will provide Shiba Inu the tools it needs to start charting its own course for organic growth. It might also be compared to Yuga Lab’s Otherside metaverse given the fresh utility it is bringing to the table.
The Impact on Shiba Inu and Dogecoin
Dogecoin is the oldest of the two cryptocurrencies. Jackson Palmer and Billy Markus founded DOGE in 2013. A cryptocurrency only used for peer-to-peer transactions is called Dogecoin (like Bitcoin).
On the other hand, SHIB is considerably more contemporary and was only introduced in August 2020. Its status as a Dogecoin rival is more than just a myth. In the words of its creators, the Shiba Inu was created to “surpass” and “kill” the Dogecoin.
However, the market activity of meme coins might provide insight into how their investors typically see such assets. In response to questions about why DOGE and SHIB have underperformed, Kurt Grumelart, a trader at Sydney-based crypto fund Zerocap, stated that “meme coin investors [quite generally speaking] are largely interested in catching the next 1,000x, diverting capital away from established tokens such as these.”
The Technical Difference Between Shiba Inu and Dogecoin
A fork that formed on the Litecoin network is where Dogecoin got its start. Dogecoin was not intended to be a deflationary currency, in contrast to Bitcoin. As a result, there is no cap on the quantity of DOGE in existence. Around 129 billion DOGE coins are thought to be in circulation as of this writing.
Does ApeCoin have Any Impact?
According to some traders, ApeCoin’s (APE) recent growth could position it alongside DOGE and SHIB as one of the top risk-on assets.
“APE has been discussed in some crypto networks as a potential replacement for DOGE and SHIB as the proxy risk-on asset, according to Grumelart. “APE could fulfill the role and become the preferred meme token in the crypto world, even though it hasn’t had much opportunity to establish itself, especially as Yuga’s cultural influence grows.”