E Dogecoin Price Has Sparked Momentum In Penny Stocks In April

Whether you know what the current Dogecoin price is or not, you've likely heard about the meme token recently. Originally fueled by social media users, Dogecoin has become a trending topic of discussion. The interesting part is that the Shiba-Inu-themed token is not moving in the same direction as other major cryptos like Bitcoin and Ethereum dive. Whether or not Doge will come out of this cryptocurrency storm smelling like a rose is obviously yet to be seen. However, these events, overall, could have been the catalyst that restarted momentum in things like small-cap stocks. 

dogecoin price stocks to watch

There's no doubt that ETFs like the Russell 2000 Small-Cap Index ETF (IWM) has lagged the broader markets recently. Volume in April for the market as a whole has also been lighter compared to previous months. Needless to say, the "stock pickers" of the market remain focused on finding volatile trades. I've talked about Reddit penny stocks in the past, which have grown in favor of the Robinhood crowd. Though penny stocks on Robinhood are limited to NASDAQ and NYSE-listed names, for the most part, I feel that it is this group of market participants helping to revive some life back into retail trades. Case in point: you can trade both stocks and crypto on the app. Today, most cryptocurrencies are down, which would be a perfect setup to rotate back into stocks. 

Are Penny Stocks The Best Way To Play The Boom In Cryptocurrency?

When it comes to cheap stocks, the underlying companies are usually in the development stages of business. This means they're still trying to figure out how to grow and monetize their business. Since many operate with very lean operations, it offers an interesting ability to pivot and try new things without facing too much opposition. For instance, most of the cryptocurrency stocks from months past made some sort of pivot or another to take advantage of this trend in digital assets.

Whether it was NFTs or mining, companies like Marathon Digital Holdings (MARA) and Canaan Inc. (CAN) have grown into mainstream names thanks to the crypto boom. Even look at Takung Art (TKAT) and Oriental Culture Holding (OCG) earlier this year. Neither has released any meaningful news. But the sheer speculation that they were exposed to non-fungible tokens made them into more "reputable companies" in some sense. Again, both TKAT and OCG were considered penny stocks before this boom in crypto. 

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William K. 2 weeks ago Member's comment

Certainly this article makes a lot of sense.