21 May

Shiba Inu and Dogecoin remain popular options for investors as the bull market progresses. However, recent crashes have not only affected their prices but also dampened market sentiment surrounding these meme coins. With sentiment declining for both, it may indicate an opportune moment to reconsider investing in them.

Shiba Inu And Dogecoin Fall To Neutral

A scale called the Fear & Greed Index can be used to determine how cryptocurrency investors are feeling about a specific asset at any given moment. Investor willingness to invest in the assets increases with scale. On the other hand, as the scale falls, the opposite occurs.

This scale uses numbers to indicate the sentiment in five categories: Extreme Fear, Fear, Neutral, Greed, and Extreme Greed. Extreme Fear ranges from 1 to 25, Fear from 26 to 46, Neutrality from 47 to 53, Greed from 54 to 75, and Extreme Greed from 76 to 100.

As the crypto market experienced a rebound since the beginning of 2024, coins like Shiba Inu and Dogecoin witnessed a surge in market sentiment, reaching levels of Extreme Greed. However, with prices now undergoing corrections, sentiment has declined, pushing them towards the fear territory. Presently, both Shiba Inu and Dogecoin sentiment indexes are at neutral levels.

According to data from the CFGI website, Shiba Inu's sentiment stands at 51, indicating neutrality, while Dogecoin registers a score of 52, also in the neutral zone. This suggests that investors are currently adopting a wait-and-see approach, refraining from making significant moves until there is more clarity on price direction.

Is Now the Right Time to Buy?

Historically, when investors are apprehensive about the market is when they should purchase. This frequently indicates that the prices are at their lowest point, which makes them the best time to buy. But rather than being a neutral feeling, this has typically happened during periods of intense terror.

For instance, certain bullish measures are still being observed for Dogecoin and Shiba Inu. The daily trading volume of these assets is one of them. Over the past day, Dogecoin's trading volume has increased by 15.51% to $845.7 million. In contrast, during the same period, the trading volume for Shiba Inus increased by 22.86% to $389 million.

This indicates that although sentiment is shifting towards neutrality, there remains substantial interest in both of these meme coins. Consequently, it may not be advisable to heavily invest at this moment. Instead, adopting a strategy of smaller positions and dollar-cost averaging (DCA) could be more prudent.

However, given projections for the bull market to persist and potentially surpass previous cycles, current prices are anticipated to appear attractive once the cryptocurrency market resumes its upward movement.

May 2024, Cryptoniteuae

* The email will not be published on the website.