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Analyzing the Recent Downturn in Dogecoin and Shiba Inu Prices

In a surprising turn of events, the prices of Dogecoin and Shiba Inu have experienced a notable decline within the last 24 hours. This downturn has introduced a bearish sentiment around these prominent meme coins, largely due to prevailing macroeconomic uncertainties.

Factors Contributing to the Price Decline

According to CoinMarketCap, Dogecoin and Shiba Inu have witnessed price drops of over 3% and 2% respectively. This decline is attributed to macroeconomic factors, particularly the recent tariffs announced by former U.S. President Donald Trump. On a recent Wednesday, Trump revealed a 25% tariff on auto imports, unsettling the market similar to previous tariff announcements.

This move has exacerbated fears of a potential trade war, adversely affecting the cryptocurrency market. Investors are showing caution by reducing their holdings in these digital assets, resulting in the observed price drops for Dogecoin and Shiba Inu. Additionally, the market is reacting to the counter-tariffs anticipated to commence on April 2nd. Dubbed ‘Liberation Day’ by Trump, the impending tariffs could potentially escalate tensions with countries like China, Canada, and France, who have vowed to retaliate. The extent of these tariffs could further impact Dogecoin and Shiba Inu prices.

Impact of PCE Inflation Data

Another critical factor influencing the price decline is the release of the PCE inflation data. The PCE index showed a 0.3% rise in February, aligning with expectations. However, the core PCE index, which increased by 2.8% annually, surpassed expectations, triggering concern.

This development poses a bearish outlook for Dogecoin and Shiba Inu as the PCE is a key inflation gauge for the U.S. Federal Reserve. With inflation indicators rising, the Fed is unlikely to relax monetary policies or lower interest rates, which could negatively impact these meme coins further.

Current Market Position of DOGE

Renowned crypto analyst Master Kenobi has highlighted Dogecoin’s precarious position. He emphasizes the importance of DOGE rebounding from the red trend line at $0.177, as witnessed in September of the previous year.

If Dogecoin fails to stabilize at this level, Kenobi warns that the last line of defense is the yellow support line at approximately $0.14. A breach below this support could signify the conclusion of the meme coin’s bullish trajectory.

Interconnected Price Dynamics with Shiba Inu

The potential downturn in Dogecoin’s price also poses a risk to Shiba Inu due to their positive correlation. Data from IntoTheBlock indicates that most on-chain metrics for SHIB, including large transactions, are currently showing bearish trends. This suggests that SHIB whales are not optimistic about the coin’s immediate future, opting to remain cautious.

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