Emily Walker
In the past day, prices for Dogecoin and Shiba Inu have seen a significant drop as the overall cryptocurrency market undergoes a correction. This decline is influenced by various factors, notably the holiday season, with many traders opting to remain on the sidelines.
Reasons Behind the Price Decline of Dogecoin and Shiba Inu
According to CoinMarketCap data, both Dogecoin and Shiba Inu have fallen by over 3% in the last 24 hours. During the holiday season, traders often withdraw from market participation, which has prompted a wave of sell-offs and contributed to the price drop for these popular meme coins.
Analysis of past market trends reveals that significant corrections for Dogecoin and Shiba Inu during this season are not uncommon. Historically, Dogecoin has ended the month of December negatively in two of the last three years, even during the upward trend of 2021. Similarly, Shiba Inu has shown a tendency to close December with losses in the same timeframe.
Another factor potentially impacting the prices of these coins is the diminished expectation of Donald Trump following through with his proposed Strategic Bitcoin Reserve. Bitcoin prices had started to incorporate this initiative after Trump’s election win. However, recent discussions from experts like Jeff Park from Bitwise suggest that the establishment of this reserve may not materialize by 2025. Consequently, Bitcoin’s recent price decline has negatively affected Dogecoin and Shiba Inu, given their strong correlation with Bitcoin’s performance.
Expectations for a Price Recovery
Despite the recent downturn, there are optimistic forecasts for a rebound in prices for Dogecoin and Shiba Inu. Analyst Master Kenobi has projected that the price of Dogecoin could hit a new high by January 2025, referencing the precedent set during the 2021 bull run when the price rebounded in January following a significant correction the previous December.
Similarly, Trader Tardigrade has shared a positive perspective for Dogecoin, indicating that it has begun a new bullish phase. In a post on X, he noted that DOGE appears to be following a specific bullish trend.
Meanwhile, analyst Javon Marks has expressed confidence in Shiba Inu’s price potential, suggesting an impending upward shift. He highlighted recent bullish indicators for Shiba Inu, projecting a journey towards the $0.000081 mark, with expectations of a rally exceeding 234%.