Major meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have taken the spotlight amidst the ongoing cryptocurrency market rally as both have, after months in the red, achieved notable rallies in the most recent week of trading.
DOGE managed a rally of just over 10% within the time frame as its price increased from $0.09 to $0.10 and its valuation from $13.79 billion to $15.35 billion.
DOGE price one-week chart. Source: CoinMarketCapSimultaneously, SHIB is up nearly 15%, having risen from $0.000005372 to $0.000006161.In terms of market capitalization, Shiba Inu is up $3.16 billion to $3.62 billion, adding almost 500m to its total worth.
SHIB price one-week chart. Source: CoinMarketCapDespite such performance, it is somewhat unclear whether the two most popular meme coins are worth buying in March.
Specifically, while the entirety of the cryptocurrency market is on the rise so far this month, with Bitcoin (BTC) fighting to decisively reclaim $74,000, both the recent strong volatility and the latest rallies increase the risks that a downward correction is imminent.
Why Washington can make or break DOGE and SHIB in March
Along with the ongoing war against Iran that the U.S. and Israel initiated on February 28, perhaps the most important external narrative for digital assets might come on March 18.
Specifically, the Federal Open Market Committee (FOMC) meeting will end on the day and bring a new interest rate decision.
Considering that digital assets tend to do well when there is either more money or accessible debt in the system, a decision to lower the funds rate could accelerate the ongoing rally.
A decision to hold the rates steady or increase them – both being the more likely outcomes due to the oil and other fossil fuel products price shocks related to the war – could, on the flip side, trigger a substantial selloff with DOGE and SHIB being especially exposed.
Bitcoin guides SHIB and DOGE short-term rally
Elsewhere and in the very short term, an argument can be made that investing in the two meme coins might be worth it.
Indeed, the last week featured a relatively tight cryptocurrency market-wide correlation with Bitcoin, and BTC’s one-day performance indicates that SHIB and DOGE are likely to continue their rally, at least for the time being.
Lastly, another possible indication that the upsurge will continue comes from the Altcoin Season Index, which, per the data Finbold retrieved from CoinMarketCap, hints at notable capital rotation into high-beta assets: a class that includes meme coins.
Featured image via Shutterstock
Source: https://finbold.com/are-shiba-inu-and-dogecoin-a-good-buy-in-march/
