Boy, it’s been a bumpy ride for meme tokens Dogecoin (CRYPTO:DOGE) and Shiba Inu (CRYPTO:SHIB) of late. These top dog-inspired cryptocurrencies both remain more than 80% below their 52-week highs at the time of writing.
There’s certainly reason for this decline. What goes up rapidly often comes back to earth just as quickly. For tokens like DOGE and SHIB with the kind of speculative fervor reserved for only the most high-risk assets out there, this decline should come as no surprise to those who’ve placed their bets.
That said, is another rally to all-time highs even possible? And can another rally take place in short order, or will this token need to consolidate for a while before anything can happen?
Let’s dive into what meme token bulls are watching with these tokens right now.
Robinhood support and Shibarium: Quite a lot on Shiba Inu’s plate
Among the key catalysts Shiba Inu bulls point to right now is a potential Robinhood listing. Rumours of a listing have circulated for some time. However, recent reports suggest there may be fire, where there’s smoke, this time.
Any sort of major listing could boost Shiba Inu’s profile and provide the kind of near-term catalyst many speculators hope for. Demand for SHIB would theoretically increase on a listing, and liquidity would also improve. However, this catalyst remains uncertain, given the fact we haven’t heard any suggestion from Robinhood a listing is on the table.
Another key catalyst for this token is on its way: Shibarium, a layer-2 network that some expect will launch in Q1 2022. The launch of Shibarium could possibly provide a big boost to SHIB’s price. This layer-2 network’s aim will be to improve scalability and transaction costs but remains a concept for the time being.
Is Dogecoin worth a buy right now?
Dogecoin, the “original” meme token, has taken investors on a wild ride in recent years. Indeed, many believe that without Dogecoin, Shiba Inu never would have succeeded. I think that sentiment is fair.
This token surged to an all-time high in May of last year of approximately $0.75. However, since then, this token has lost approximately 80% of its value.
Dogecoin bulls note that increasing corporate adoption of this coin is something to watch. Companies like Tesla and other high-profile, retail-friendly companies have adopted Dogecoin as payment. While relatively miniscule in terms of transaction volumes, increasing adoption is a good thing, especially for meme tokens that are often perceived as having little real-world utility.
Bottom line
Both Dogecoin and Shiba Inu remain highly speculative investments reserved for only the most aggressive investors. Personally, I enjoy watching these tokens from the sidelines. However, I can also understand the impetus for investors to jump in. With volatility comes great risk but also great reward.
Those thinking about jumping into either token should weigh their risk tolerance level and capital needs before doing so. While these tokens could certainly fly, there’s also the risk of a serious permanent loss of capital that needs to be factored into the investment decision on these tokens.
