Analyzing the Current Decline in Dogecoin and Shiba Inu Prices
As the year approaches its conclusion, both Dogecoin and Shiba Inu are experiencing a downturn in their market values, generating a wave of bearish sentiment among investors. This decline is largely influenced by the broader cryptocurrency market trends and significant macroeconomic factors.
Factors Contributing to the Decline in Dogecoin and Shiba Inu Prices
According to data from CoinMarketCap, Dogecoin and Shiba Inu have witnessed a decrease of over 2% and 4%, respectively, today. This downward trend can be linked to the lackluster performance of Bitcoin and various macroeconomic influences. Both Dogecoin and Shiba Inu are known for their strong positive correlation with Bitcoin’s price fluctuations.
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The Influence of Bitcoin’s Performance
Whenever Bitcoin experiences bearish trends, Dogecoin and Shiba Inu tend to follow suit. Renowned analyst Peter Brandt has forecasted a potential plunge in Bitcoin’s value, possibly dropping to as low as $78,000. Furthermore, crypto analyst Rekt Capital has suggested the possibility of Bitcoin falling to $90,000 if it breaches the $94,250 threshold.
With Bitcoin’s current price hovering below $94,250, the cryptocurrency market faces the possibility of further declines. This scenario has triggered significant sell-offs, adversely impacting the values of Dogecoin and Shiba Inu. If Bitcoin continues its downward trajectory, these popular meme coins could face additional price pressure.
Market Uncertainty and Its Impact
Amidst prevailing market uncertainties, the prices of Dogecoin and Shiba Inu have also been affected. Looking ahead to 2025, economic commentator The Kobeissi Letter has highlighted the introduction of new economic policies, tariffs, and the looming threat of inflation. Consequently, stagflation is anticipated to be a dominant theme in the coming year.
Moreover, uncertainty surrounding the Federal Reserve’s policy for 2025 adds to the market’s volatility. Fed Chair Jerome Powell has hinted at reduced interest rate cuts, leading investors to approach riskier assets, such as Dogecoin and Shiba Inu, with caution.
Positive Indicators for Dogecoin
Despite the current challenges, some positive indicators for Dogecoin have emerged. Crypto analyst Kevin Capital shared insights on the DOGE/BTC chart, noting its intriguing patterns. The analyst mentioned Dogecoin’s return to the macro golden pocket, supported by a significant demand wick. Additionally, Dogecoin has maintained its position above the 100 Exponential Moving Average (EMA) on the daily chart, which is considered a bullish signal.
Kevin Capital further observed that the daily Moving Average Convergence/Divergence (MACD) suggests a potential upward crossover, indicating Dogecoin’s potential strength against Bitcoin in the near future.
Throughout the year, Dogecoin has demonstrated remarkable resilience against Bitcoin, outperforming the flagship cryptocurrency with a year-to-date gain of 245% in 2024.
