Meme Coins Like Dogecoin and Shiba Inu Could Be Viable Candidates for the US Crypto Reserve

Meme coins like Dogecoin and Shiba Inu could be viable candidates for the US Crypto Reserve. Or at least, this is the speculation that has started circulating

The crypto market is known for its rapid shifts in value, and recent days have seen a striking instance of this volatility with the meme coins Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB). The price of Dogecoin has dropped despite an announcement by former President Donald Trump that Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA), and Ripple (CRYPTO: XRP) will be included in the US Strategic Crypto Reserve.

After reaching a peak of $0.24 on Sunday, Dogecoin experienced a downturn, falling by 5% over the past 24 hours to trade at $0.20 at the time of writing. This decline followed a period of significant gains that saw Dogecoin rise by 100% in February.

As this news broke, Dogecoin co-creator and X figure Billy Markus, also known as Shibetoshi Nakamoto, made a humorous comment about how Dogecoin is also a US-made cryptocurrency, perhaps suggesting that it should be added to the crypto reserve. This playful remark sparked speculation among Dogecoin investors.

While the scenario might seem far-fetched, it's worth noting that meme coins are known for their volatility, and the possibility of them becoming a staple in a government-backed crypto reserve appears quite slim.

On the other hand, Shiba Inu faced difficulties in maintaining its recent rally, resulting in a return to a previous support level. This occurred after a report by Bloomberg, which claimed that Trump might be open to adding meme coins like Dogecoin and Shiba Inu to the crypto reserve.

The price of Shiba Inu fell by 9% over the past week, reaching $0.000013 at the time of writing. This brought the total monthly losses to 13%, according to CoinMarketCap data.

However, crypto analyst Lamatrade highlighted a bullish divergence on the 4-hour chart of Shiba Inu, which could indicate an upcoming price increase.

"4-hour chart is oversold, and we're getting lower lows and higher highs (divergence). We could see some bouncing back from here, especially if buyers return."

This divergence is evident as the lower time frames, such as the 4-hour chart, are forming higher lows despite the overall downward trend. This divergence suggests that the selling pressure might be decreasing, potentially leading to a reversal of the price action.

Furthermore, the RSI indicator on the 4-hour time frame has risen above 70 points, entering the oversold territory. This level is typically reached when the price experiences strong downward momentum, which could attract buyers to enter the market.