Dogecoin and Shiba Inu are experiencing a noticeable price drop today, triggering a wave of concern among investors as the year draws to a close. This decline can be linked to the broader crypto market sentiment and shifting macroeconomic factors.
Recent data from CoinMarketCap indicates that Dogecoin and Shiba Inu have fallen by over 2% and 4%, respectively. The primary reason behind this dip lies in the lackluster performance of Bitcoin, which is known to have a significant impact on meme coins like Dogecoin and Shiba Inu. These cryptocurrencies often follow Bitcoin’s lead, and when Bitcoin suffers, they tend to follow suit.
Analyst Peter Brandt has raised eyebrows with predictions that Bitcoin could plummet to as low as $78,000. Similarly, crypto analyst Rekt Capital warned that if Bitcoin fails to maintain the $94,250 mark, it could slide further down to $90,000. With Bitcoin’s current position being precarious, the sense of urgency has caused an unsettling sell-off across the crypto market, which in turn affects Dogecoin and Shiba Inu prices.
The uncertainty surrounding the market isn’t helping either. As we head toward 2025, commentators like The Kobeissi Letter are pointing towards significant economic changes, including new tariffs and rising inflation, suggesting that the overarching theme may be stagflation. Investors are also anxious about the Federal Reserve’s future moves, particularly after Chair Jerome Powell hinted at fewer interest rate cuts next year. This uncertainty is making risk assets like Dogecoin and Shiba Inu less appealing.
Despite the gloomy outlook, there are some rays of hope for Dogecoin. Analyst Kevin Capital highlighted some positive indicators in a recent post. He pointed to the DOGE/BTC chart, which he described as intriguing. Dogecoin has recently tested its macro golden pocket, signifying strong demand, and it has managed to hold above the 100 Exponential Moving Average (EMA) daily, which could suggest bullish momentum.
Moreover, the Moving Average Convergence/Divergence (MACD) indicator is showing signs of a potential upward crossover, hinting that Dogecoin may gain strength against Bitcoin in the near term. Impressively, Dogecoin has already demonstrated resilience this year, outperforming Bitcoin with a year-to-date gain of 245%.
So, while the current market conditions are undeniably tough for Dogecoin and Shiba Inu, the underlying potential for a rebound exists. Investors are likely to keep an eye on Bitcoin’s performance and the broader economic landscape as they navigate through these turbulent times.
