Understanding the Current Challenges Facing Dogecoin and Shiba Inu Prices
The current landscape for Dogecoin and Shiba Inu coins appears challenging as they grapple with maintaining upward momentum. These popular meme coins are experiencing notable downturns due to broader macroeconomic factors that have introduced market volatility, fostering a bearish outlook among investors.
The Underlying Reasons for Dogecoin and Shiba Inu Price Declines
According to data from CoinMarketCap, both Dogecoin and Shiba Inu have seen declines in the past 24 hours. The primary meme coins have been unable to sustain an upward trend, facing continued downward pressure. The bearish sentiment surrounding Dogecoin and Shiba Inu can largely be attributed to trade tariffs imposed by Donald Trump, alongside retaliatory measures from other nations, raising fears of an impending trade war.
Advertisement Banner
Recently, Donald Trump announced a 25% tariff on all steel and aluminum imports. Prior to this, tariffs on imports from Canada, Mexico, and China were also declared. Although a temporary halt on imports from Mexico and Canada was agreed upon, the tariff on Chinese goods remains in place. In response, China has introduced import taxes on certain U.S. products, effective today. These tariffs have heightened concerns about a trade war, contributing to the bearish sentiment among investors and traders, which is negatively impacting Dogecoin and Shiba Inu prices. Historically, trade wars are unfavorable for markets as they have the potential to hinder economic growth.
Amidst these developments, Bloomberg has reported that Trump plans to announce ‘reciprocal tariffs’ this week, further deepening market uncertainty and adding to the challenges faced by Dogecoin and Shiba Inu.
In addition to trade tensions, the hawkish approach of the U.S. Federal Reserve is another factor influencing the struggles of these meme coins. The timing of the Fed’s next interest rate cut remains uncertain as the committee continues to express concerns about inflation. Consequently, traders are cautious about investing in risk assets such as cryptocurrencies, which adds to the bearish pressure on Dogecoin and Shiba Inu prices.
Anticipating a Potential Rally for DOGE and Shiba Inu
Despite the short-term bearish conditions affecting Dogecoin and Shiba Inu prices, there is optimism for a potential rally in the long term. Renowned crypto analyst Trader Tardigrade anticipates that Dogecoin could still reach a target of $3.69. The analyst highlights that DOGE has been oscillating within a parallel channel, occasionally experiencing overshoots. Based on this pattern, Tardigrade suggests that DOGE might reach the $3.69 mark during its next upward move.
Similarly, crypto analyst Javon Marks foresees a possible rally for Shiba Inu, predicting it could rise to $0.0001553. Marks notes that SHIB has already exhibited bullish signals, indicating a continuation of the trend. Additionally, it has broken out of a significant resistance trend, suggesting a rally towards $0.000081 is feasible. Once this target is achieved, Marks believes a further surge to $0.0001553 could follow.
As of now, DOGE is trading at $0.25, showcasing the potential for future gains. While the current market environment poses challenges, the long-term outlook for Dogecoin and Shiba Inu remains promising.
“`
