The prices of Dogecoin and Shiba Inu are experiencing a decline today as the year comes to an end, causing concern among investors. This drop in price is influenced by the overall sentiment in the cryptocurrency market and macroeconomic developments.
According to data from CoinMarketCap, Dogecoin and Shiba Inu prices have fallen by over 2% and 4%, respectively, today. This decrease can be linked to the lackluster performance of Bitcoin and broader macroeconomic factors. Dogecoin and Shiba Inu are known to have a strong positive correlation with Bitcoin, so when Bitcoin’s price sentiment turns bearish, it often leads to a decline in the prices of these meme coins.
Renowned analyst Peter Brandt has predicted that Bitcoin could potentially crash to as low as $78,000, while Rekt Capital suggested a drop to $90,000 if Bitcoin falls below $94,250. With Bitcoin currently below the $94,250 mark, there is a risk of further declines, triggering a wave of sell-offs in the crypto market and causing Dogecoin and Shiba Inu prices to drop.
Uncertainty in the market is also contributing to the decline in Dogecoin and Shiba Inu prices. Market commentator The Kobeissi Letter has highlighted upcoming economic policies, tariffs, and rising inflation as factors leading to uncertainty. Additionally, there are concerns about the Federal Reserve’s stance for 2025, with hints of lower interest rate cuts next year making investors wary of investing in risky assets like Dogecoin and Shiba Inu.
Despite the negative sentiment, there are some positive indicators for Dogecoin. Crypto analyst Kevin Capital pointed out that the DOGE/BTC chart looks promising, with Dogecoin testing the macro golden pocket and holding the 100 Exponential Moving Average on the daily chart. The Moving Average Convergence/Divergence (MACD) also suggests potential strength for Dogecoin against Bitcoin in the near future.
In 2024, Dogecoin has already demonstrated significant strength against Bitcoin, outperforming BTC with a year-to-date gain of 245%. This positive performance is reflected in the charts, showing DOGE price movements after a crash.
Overall, the current decline in Dogecoin and Shiba Inu prices can be attributed to the broader market sentiment, macroeconomic factors, and uncertainty in the cryptocurrency space. Investors are advised to closely monitor market developments and potential price movements in order to make informed decisions regarding their investments in these meme coins.
