Dogecoin and Shiba Inu prices are falling today as the year comes to an end, creating bearish sentiment among investors. This price drop is due to sentiment in the broader crypto market and macroeconomic developments.
Why Dogecoin and Shiba Inu Prices Are Falling Today
CoinMarketCap Data shows that the prices of Dogecoin and Shiba Inu have fallen by more than 2% and 4%, respectively, today. This price drop can be attributed to Bitcoin’s tepid price action and macroeconomic factors. Dogecoin and Shiba Inu They are known to share a strong positive price correlation with Bitcoin.
As such, Dogecoin and Shiba Inu prices tend to drop whenever there is bearish sentiment surrounding the price of Bitcoin. Legendary analyst Peter Brandt predicted that Bitcoin could fall to as low as $78,000. Crypto analyst Rekt Capital also suggested that the flagship cryptocurrency could fall as much as $90,000 if it loses $94,250.
With the bitcoin price Below $94,250, the cryptocurrency is at risk of further declines. This has caused a wave of sell-offs in the cryptocurrency market, causing the prices of Dogecoin and Shiba Inu to fall. Major meme coins appear to be at risk of further price declines if the flagship cryptocurrency falls to as low as $90,000.
Meanwhile, there is a lot of uncertainty in the market, which has also caused the prices of Dogecoin and Shiba Inu to drop. Looking ahead to 2025, market commentator Kobeisi’s letter He noted that there will be many new economic policies, tariffs and increased inflation. Along these lines, the market commentator predicts that the theme for next year will be stagflation.
There is also uncertainty around the Fed’s stance for 2025, with Fed Chair Jerome Powell hinting at smaller interest rate cuts next year. Therefore, investors are skeptical about investing in risky assets like Dogecoin and Shiba Inu.
Some positive aspects of DOGE
Crypto analyst Kevin Capital provided some positives for Dogecoin price. In a publication DOGE/BTC chartstating that it seems very interesting. The analyst revealed that Dogecoin had returned and tested the macro gold market with a huge demand wick. The top meme coin is also said to have held the 100 EMA on the daily, which the analyst says is a very bullish sign.
Kevin Capital added that the newspaper Moving Average Convergence/Divergence (MACD) looks to get a new upside crossover, indicating that Dogecoin price may show strength against Bitcoin for the foreseeable future.
Dogecoin has already demonstrated impressive strength against the flagship cryptocurrency this year. DOGE surpassed BTC in 2024 with a year-to-date (YTD) gain of 245%.
Featured image created with Dall.E, chart from Tradingview.com
