Dogecoin and Shiba Inu prices are falling today as the year draws to a close, sparking bearish sentiment among investors. This price drop is due to sentiment in the broader crypto market as well macroeconomic development.
Why Dogecoin and Shiba Inu Prices Are Falling Today
CoinMarketCap data shows that the prices of Dogecoin and Shiba Inu fell by more than 2% and 4%, respectively, today. This price drop can be attributed to Bitcoin’s hot price action and macroeconomic factors. Dogecoin and Shiba Inu they are known to share a strong positive price correlation with Bitcoin.
As such, the prices of Dogecoin and Shiba Inu tend to fall whenever there is a bearish opinion about the price of Bitcoin. A mythic commentator Peter Brandt predicted that Bitcoin could crash as low as $78,000. Crypto analyst Rekt Capital also suggested that the main crypto could drop as low as $90,000 if it loses $94,250.
With The price of Bitcoin below $94,250, the crypto is at risk of further decline. This sparked a wave of selling in the crypto market, leading to a drop in the price of Dogecoin and Shiba Inu. The leading meme coins seem vulnerable to further price declines if the top crypto falls as low as $90,000.
Meanwhile, there is a lot of uncertainty in the market, which has caused the prices of Dogecoin and Shiba Inu to drop. Entering 2025, market analyst Kobeissi’s book noted that there will be many new economic policies, tariffs, and inflation. In line with this, the market analyst predicts that next year’s total will be stagflation.
There is also uncertainty about the position of the Federal Reserve in 2025, as Fed Chairman Jerome Powell indicated that there will be a decrease in interest rates next year. Therefore, investors are hesitant about investing in risks like Dogecoin and Shiba Inu.
Some Good Things for DOGE
Crypto analyst Kevin Capital offered something positive on the price of Dogecoin. In X’s post, you refer to DOGE/BTC chartsaying that it looks very interesting. The analyst pointed out that Dogecoin has returned and tested a large gold package with a large demand wick. The leading meme coin is also said to be holding the 100 Exponential Moving Average (EMA) daily, which the analyst says is a very good sign.
Kevin Capital added that every day Moving Average Convergence/Divergence (MACD) looks to find a new cross at the top, indicating that the price of Dogecoin may show strength against Bitcoin for the foreseeable future.
Dogecoin has already shown impressive strength against the flagship crypto this year. DOGE outperformed BTC in 2024 with a year-to-date (YTD) gain of 245%.
The featured image was created with Dall.E, a chart from Tradingview.com