Dogecoin and Shiba Inu prices are falling today as the year draws to a close, sparking bearish sentiment among investors. This price drop is thanks to the sentiment in the broader crypto market and macroeconomic developments.
Why The Dogecoin And Shiba Inu Prices Are Falling Today
CoinMarketCap data shows that the Dogecoin and Shiba Inu prices have dropped over 2% and 4%, respectively, today. This price drop can be attributed to the tepid Bitcoin price action and macroeconomic factors. Dogecoin and Shiba Inu are known to share a strong positive price correlation with Bitcoin.
As such, the Dogecoin and Shiba Inu prices tend to decline whenever there is a bearish sentiment around the Bitcoin price. Legendary analyst Peter Brandt predicted that Bitcoin could crash to as low as $78,000. Crypto analyst Rekt Capital also suggested that the flagship crypto could drop to as low as $90,000 if it loses $94,250.
With the Bitcoin price below $94,250, the crypto is at risk of further declines. This has sparked a wave of sell-offs in the crypto market, leading to the decline of the Dogecoin and Shiba Inu prices. The foremost meme coins look to be at risk of further price declines if the flagship crypto drops to as low as $90,000.
Meanwhile, there is a lot of uncertainty in the market, which has also caused the Dogecoin and Shiba Inu prices to fall. Heading into 2025, market commentator The Kobeissi Letter noted that there will be a lot of new economic policies, tariffs, and rising inflation. In line with this, the market commentator predicts that the theme for next year is stagflation.
There is also uncertainty around the Federal Reserve’s stance for 2025, as Fed Chair Jerome Powell hinted there will be lower interest rate cuts next year. Therefore, investors are skeptical about investing in risk assets like Dogecoin and Shiba Inu.
Some Positives For DOGE
Crypto analyst Kevin Capital provided some positives for the Dogecoin price. In an X post, he alluded to the DOGE/BTC chart, stating that it looks very interesting. The analyst revealed that Dogecoin had come back and tested the macro golden pocket with a huge demand wick. The foremost meme coin is also said to have held the 100 Exponential Moving Average (EMA) on the daily, which the analyst claimed is a very bullish sign.
Kevin Capital added that the daily Moving Average Convergence/Divergence (MACD) looks to get a fresh cross to the upside, indicating that the Dogecoin price 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%.
Featured image created with Dall.E, chart from Tradingview.com
