Bitrabo Editorial
Investors have been eyeing Dogecoin and Shiba Inu as attractive options during the current bull market. However, recent price crashes have significantly impacted market sentiment towards these meme coins. With the sentiment dropping, some believe that it could signal a good opportunity to re-enter the market.
Dogecoin and Shiba Inu Enter Neutral Zone
The Fear & Greed Index serves as an indicator of how investors perceive a specific asset at a given time. High scores indicate increased investor interest, while lower scores reflect the opposite.
The index categorizes sentiment into Extreme Fear, Fear, Neutral, Greed, and Extreme Greed, each represented by numerical ranges. As the crypto market recovered in early 2024, Dogecoin and Shiba Inu saw their sentiment shift towards greed, even reaching Extreme Greed. However, with prices now correcting downwards, sentiment has also fallen, placing both assets in the neutral territory.
According to data from the CFGI website, Shiba Inu and Dogecoin currently hold neutral scores of 51 and 52, respectively. This indicates that investors are currently adopting a wait-and-see approach, refraining from making significant moves until there is more clarity in price direction.
Opportunity to Buy?
In general, buying during times of market caution can present favorable entry points, often signaling price bottoms. However, this strategy typically applies during periods of extreme fear rather than neutral sentiment.
Despite the neutral sentiment, both Dogecoin and Shiba Inu show positive indicators, such as increasing daily trading volumes. Dogecoin’s trading volume has surged by 15.51% to $845.7 million, while Shiba Inu has seen a 22.86% rise to $389 million in the same period.
While neutral sentiment suggests caution, the sustained interest in these meme coins indicates the potential for future growth. Therefore, it might be advisable to consider smaller positions and dollar-cost averaging rather than making significant investments at this time.
With the bull market projected to continue and potentially surpass previous highs, current prices could appear attractive once the crypto market gains momentum.