Dogecoin has seen a new series of progress and reputation after being included in the cryptocurrency exchange site Coinbase Pro.
Likewise, Tesla CEO Elon Musk’s tweets have also promoted the price of Dogecoin in recent days. After Musk’s tweet, there has been an increase of interested folks who went for the cryptocurrency based on the social media hype.
But does this suggest the SHIB coin could increase, too?
Will Dogecoin affect SHIB coin rise?
Shiba Inu may be able see some success because of Dogecoin. As per Yahoo! Finance, the SHIB coin gained drive because Dogecoin has been getting some help. According to them,
SHIB coin will only see more of those opportunities because investors may put more money into the cryptocurrency due to a “sympathy trade. Shiba Inu’s current market capitalization is about $3.9 billion compared to Dogecoin’s $55.5 billion, and some traders may be willing to bet that Shiba Inu will start to close the gap in case it becomes more popular.”
As per Lightspeed, “sympathy trade” investing refers to when “a trader reacts to news occurring in one security by trading another security that is making a move as a result.”
As an example. If an investor sees a dip in Macy’s, they may be hesitant to invest in JCPenney since they’re of a similar market, according to Lightspeed.
Is it smart to invest in SHIB coin because of Dogecoin?
SHIB coin has a opportunity to rise; riding the wave of momentum from Dogecoin. It stated that,
“However, traders should note that Shiba Inu will likely remain dependent on Dogecoin’s dynamics as it is still views as ‘another cryptocurrency with an image of a cute dog.”
📣 Cryptonetwork.News is now on Telegram. Please click [here] to join our channel and stay updated with the latest Cryptocurrency, Blockchain, and Cryptomining headlines.