Emily Walker
As the year comes to an end, prices for Dogecoin and Shiba Inu are experiencing declines, causing investor anxiety. This downturn is influenced by trends in the broader cryptocurrency market and recent economic developments.
Reasons Behind the Decline of Dogecoin and Shiba Inu Prices
According to CoinMarketCap, Dogecoin has decreased by over 2% while Shiba Inu has seen a drop of more than 4% today. These decreases are linked to the stagnant performance of Bitcoin and broader economic issues. Both Dogecoin and Shiba Inu often follow Bitcoin’s lead when it comes to price changes.
Consequently, when investor sentiment around Bitcoin turns negative, Dogecoin and Shiba Inu often follow suit. Notable analyst Peter Brandt has forecasted that Bitcoin could potentially fall to $78,000. Additionally, analyst Rekt Capital has indicated that if Bitcoin falls below $94,250, it could drop as low as $90,000.
With Bitcoin currently trading below $94,250, there are concerns about additional losses. This situation has triggered sell-offs across the cryptocurrency market, impacting Dogecoin and Shiba Inu negatively. The two leading meme coins may continue to struggle if Bitcoin drops further towards $90,000.
Moreover, market uncertainty is contributing to the decline of Dogecoin and Shiba Inu prices. As we approach 2025, the market is anticipating new economic policies, tariffs, and inflationary pressures. The Kobeissi Letter suggests that stagflation could be a distinguishing theme in the upcoming year.
Uncertainty also surrounds the Federal Reserve’s approach for 2025, with Fed Chair Jerome Powell indicating that interest rate cuts might be lower than expected next year. This has led to hesitation among investors in riskier assets like Dogecoin and Shiba Inu.
Positive Signals for Dogecoin
Despite the challenges, crypto analyst Kevin Capital pointed out some encouraging signs for Dogecoin prices. In a recent X post, he highlighted the DOGE/BTC chart, explaining that it reveals some interesting trends. He noted that Dogecoin has recently tested significant support levels with strong demand indicators. The leading meme coin has also remained above the 100 Exponential Moving Average (EMA) daily, which he views as a bullish signal.
Additionally, Kevin Capital mentioned that the daily Moving Average Convergence/Divergence (MACD) indicator is poised for an upside crossover, suggesting that Dogecoin may gain strength relative to Bitcoin in the near future.
This year, Dogecoin has demonstrated notable resilience against Bitcoin, achieving a year-to-date (YTD) increase of 245%, outperforming BTC in 2024.