After two days of dramatic sell-offs, the cryptocurrency market is seeing a rebound on Sunday. Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) are benefiting from the trend, with tokens up approximately 3,8% and 7,3% from the previous 24-hour period, respectively at 16pm: 30 ET today.
Dogecoin and their respective Shiba Inu tokens suffered large sell-offs in trading on Friday and Saturday, but the bearish momentum in the crypto space is now taking a breather. As each token is recovering from its recent downturns, the market's wavering appetite for risk suggests that both tokens could see more volatile price swings in the near future.
So what's going on
Dogecoin is now down around 22% over the past seven trading days, while Shiba Inu's token is down around 29,4% over the same period. Even in the midst of the recent turmoil, Shiba Inu's cryptocurrency has enjoyed a price increase of over 17.000.000% in the past year of trading. Mind you, this cryptocurrency was worth next to nothing a year ago, allowing for some massive percentage gains in comparison.
Dogecoin's earnings may seem relatively modest in comparison, but it has still performed fantastic over the past twelve months.
What are the scenarios for the near future?
If Dogecoin or Shiba Inu see greater adoption of the coin or the broader cryptocurrency market rebounds for another pronounced bull run, both tokens could see big gains from current price levels. However, investors should proceed with the understanding that each digital token appears to be a high-risk investment, and continued volatility bouts for the broader cryptocurrency market are likely to have a significant impact on each coin's valuation.
Dogecoin and Shiba Inu have managed to amass bases of passionate and highly committed supporters, but it's still unclear whether both tokens have what it takes to be a long-term winner in the cryptocurrency space. This uncertainty creates a high-risk, high-reward dynamic for investors, and it seems likely that both tokens will continue to see volatile trading in the near term.
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