What happened

After two days of dramatic sell-offs, the cryptocurrency market is seeing rebound momentum Sunday. Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) are benefiting from the trend, with the tokens up roughly 3.8% and 7.3% over the previous 24-hour period, respectively, as of 4:30 p.m. ET today.

Dogecoin and Shiba Inu's respective tokens each suffered big sell-offs in Friday and Saturday's trading, but bearish momentum in the crypto space is now taking a breather. While each token is now recovering from recent pullbacks, the market's wavering appetite for risk suggests that both tokens could see more volatile pricing swings in the near future.

Image source: Getty Images.

So what

Dogecoin is now down roughly 22% over the last seven days of trading, while Shiba Inu's token is down approximately 29.4% across the same stretch. Even in the midst of recent turbulence, Shiba Inu's cryptocurrency has enjoyed a more than 17,000,000% pricing increase over the last year of trading. Mind you, this cryptocurrency was worth next to nothing a year ago, enabling some massive percentage gains by comparison.

Dogecoin's gains might look relatively muted by comparison, but it's still posted fantastic performance over the last twelve months.

Dogecoin Price data by YCharts

Now what

If Dogecoin or Shiba Inu see increased coin adoption or the broader cryptocurrency market bounces back for another pronounced bullish run, both tokens could see big gains from current pricing levels. However, investors should proceed with the understanding that each digital token looks like a high-risk investment, and it's likely that continued bouts of volatility for the broader cryptocurrency market will have a significant impact on the valuation of each coin.

Dogecoin and Shiba Inu have each managed to amass bases of passionate, highly engaged supporters, but it's still unclear whether either token has what it takes to be a long-term winner in the cryptocurrency space. That uncertainty sets up a high-risk, high-reward dynamic for investors, and it seems likely that both tokens will continue to see volatile trading in the near term.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.