Dogecoin and Shiba Inu prices are falling today as the year comes to a close, sparking bearish sentiment among investors. This price drop is due to the prevailing sentiment in the broader cryptocurrency market Macroeconomic developments.
Why Dogecoin and Shiba Inu Prices Are Dropping Today
CoinMarketCap data It shows that Dogecoin and Shiba Inu prices are down over 2% and 4% respectively today. This price drop can be attributed to tepid Bitcoin price movement and macroeconomic factors. Dogecoin and Shiba Inu It is known to share a strong positive price correlation with Bitcoin.
As such, Dogecoin and Shiba Inu prices tend to decline when there is a downtrend around the Bitcoin price. The legendary analyst Peter Brandt predicted That Bitcoin could collapse to a low of $78,000. Cryptocurrency analyst Rekt Capital also suggested that the flagship cryptocurrency could fall to as low as $90,000 if it loses $94,250.
with Bitcoin price Below $94,250, the cryptocurrency is at risk of further decline. This sparked a wave of selling in the cryptocurrency market, sending Dogecoin and Shiba Inu prices plummeting. The top meme coins appear to be at risk of further price declines if the price of the main cryptocurrency falls to as low as $90,000.
At the same time, there is a lot of uncertainty in the market, which has also led to a decline in the prices of Dogecoin and Shiba Inu. Heading into 2025, the market is on hold Al Qubaisi’s message He noted that there will be a lot of new economic policies, tariffs and high inflation. In line with this, market commentators expect the theme of next year to be stagflation.
There is also uncertainty about the Fed’s stance for 2025, with Fed Chairman Jerome Powell hinting that there will be fewer interest rate cuts next year. Therefore, investors are skeptical about investing in risky assets such as Dogecoin and Shiba Inu.
Some positives for DOGE
Cryptocurrency analyst Kevin Capital offered some positives for Dogecoin price. In X’s post, he alluded to DOGE/BTC chartexplaining that it looks very interesting. The analyst revealed that Dogecoin has returned and tested the total gold pocket with huge demand igniting. The first meme coin is also said to have held its daily 100 Exponential Moving Average (EMA), which the analyst claimed is a very bullish signal.
Kevin Capital added that the newspaper Moving Average Convergence/Divergence (MACD) It is looking to get a new crossover to the upside, indicating that Dogecoin price may show strength against Bitcoin in the foreseeable future.
Dogecoin has already shown impressive strength against major cryptocurrencies this year. DOGE outperformed BTC in 2024 with year-to-date gains of 245%.
Featured image created with Dall.E, chart from Tradingview.com