Crypto Market Review, November 3

Despite the negativity we saw in the cryptocurrency market in recent days, the assets we detailed in our latest report avoided the plunge in the market, which could give investors some time before the plunge.

Dogecoin forming pattern

After the explosive growth, Dogecoin entered the expected consolidation at the top, with the price of the memecoin not moving in any directions. Since October 29, the price of the asset has not changed from the pace we saw before that.

As the volatility of the asset drops and the price moves sideways, the DOGE forms a new pattern that could be the cooldown it needed before it. The ascending channel is not something you usually see after an unstable price increase.

However, any kind of volatility reduction for Dogecoin is a positive factor that will give investors hope for a possible continuation of the rally in the foreseeable future. However, the price performance we are seeing today invalidates the formation we mentioned in our previous market review.

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From a fundamental point of view, Dogecoin investors are most likely waiting for an announcement about the implementation of DOGE as a payment instrument on Twitter, considering Elon Musk’s takeover.

However, Musk has neither confirmed nor denied the use of Dogecoin as a way to pay for account verification on Twitter. Unfortunately, if the social platform does not accept DOGE in the near future, it will most likely go back to what it has been doing for more than two years: moving sideways with extremely low volatility, until Musk gives investors hope again.

The Shiba Inu remains trapped

While Dogecoin enters consolidation, Shiba Inu is still struggling in the market, unable to find the right path as it remains in a corridor between the 200 and 50-day moving averages. However, the presence of purchase support is a factor we cannot and should not ignore.

The fact that the token is moving in the corridor shows that investors have not yet decided which way the cryptocurrency market will turn. Considering Shiba Inu’s correlation with the market, the movement of large caps will most likely be the main fuel for SHIB’s volatility increase.

The decline in trading volume is another factor we should take into account. As traders exit the market, the Shib’s correlation with large values ​​will increase significantly since market makers will be the only group of traders moving the Shiba Inu.

The recent interest rate hike was not a positive factor for memetokens and risk assets like Shiba Inu, which is why the continuation of the trend is questionable. Meme assets remain the most volatile parts of the cryptocurrency market, which is why investors are likely to avoid taking unnecessary risks right after the Fed indicated its desire to continue tightening monetary policy.