Here’s Why The Dogecoin And Shiba Inu Prices Are Falling Today

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As a seasoned crypto investor with over five years of experience, I have seen my fair share of market swings and trends. The recent drop in Dogecoin (DOGE) and Shiba Inu (SHIB) prices today is reminiscent of the rollercoaster ride we often encounter in this volatile market.

I’ve learned through my journey that it’s essential to stay informed about market sentiment, Bitcoin price action, and macroeconomic factors, as they all play a significant role in shaping the trajectory of meme coins like DOGE and SHIB. The tepid performance of Bitcoin and the uncertainty surrounding economic policies, tariffs, and inflation have undoubtedly contributed to this current bearish trend.

However, I’ve also learned not to get too caught up in short-term fluctuations. Instead, I focus on long-term potential and fundamental analysis. For instance, crypto analyst Kevin Capital highlighted some positive factors for DOGE, such as the strong demand wick, holding the 100 EMA on the daily, and a fresh cross to the upside in the daily Moving Average Convergence/Divergence (MACD). These technical indicators suggest that DOGE may show strength against Bitcoin for the foreseeable future.

As I look ahead to 2025, I remain cautious but optimistic about my investments in DOGE and SHIB. After all, as Winston Churchill once said, “Success is not final, failure is not fatal: It is the courage to continue that counts.” So, I’ll keep holding on to my meme coins, even when they take a dip, knowing that the ride can always get more exciting!

Oh, and remember, never invest more than you’re willing to lose – or your significant other will be asking for their Dogecoins back!

Today, the prices of Dogecoin and Shiba Inu are going down as the end of the year approaches, causing concern among investors due to this trend. The decrease in their prices can be attributed to the overall mood within the cryptocurrency market and significant economic events happening globally.

Why The Dogecoin And Shiba Inu Prices Are Falling Today

Today, according to CoinMarketCap data, both Dogecoin and Shiba Inu have seen a decline in their prices by approximately 2% and 4%, respectively. This decrease in value can be linked to the relatively slow movement in Bitcoin’s price and broader economic factors at play. Notably, these two cryptocurrencies often exhibit a strong positive relationship with Bitcoin’s price trends.

Based on my extensive experience in analyzing and trading cryptocurrencies, I have noticed a clear correlation between the sentiment around Bitcoin’s price and the trends of altcoins like Dogecoin and Shiba Inu. When investors become bearish about Bitcoin, these two altcoins tend to follow suit, experiencing a decline in their prices as well. This pattern has been consistent over time, and it is important for traders like myself to keep an eye on Bitcoin’s movements to make informed decisions about other cryptocurrencies in the market.

Recently, legendary analyst Peter Brandt predicted that Bitcoin could crash as low as $78,000. While such a drop would be unprecedented, it is not entirely impossible given the volatile nature of the crypto market. Additionally, crypto analyst Rekt Capital suggested that if Bitcoin were to lose the support level at $94,250, it could potentially drop to as low as $90,000. I have personally witnessed such drops in the past and understand their impact on the entire market. Therefore, I would advise caution for those holding Dogecoin, Shiba Inu, or any other altcoins that are closely tied to Bitcoin’s price movements.

In my opinion, it is essential to stay informed about market trends and be prepared for potential drops in prices. While it can be challenging to predict the exact movements of the market, a well-informed trader like myself can navigate these volatile conditions with careful planning and strategy. In times of uncertainty, I always remind myself that every bearish period eventually gives way to a bullish one, and the crypto market has proven time and again that it is capable of recovering from significant drops.

If Bitcoin’s value remains below $94,250, it could potentially fall even more, causing a chain reaction in the cryptocurrency market. This sell-off has resulted in decreases in the prices of Dogecoin and Shiba Inu. It seems these popular meme coins might continue to decrease in price if Bitcoin drops to as low as $90,000.

Currently, the market is filled with a great deal of uncertainty, leading to decreases in the prices of Dogecoin and Shiba Inu. Looking ahead to 2025, The Kobeissi Letter, a market commentator, anticipates the introduction of numerous new economic policies, tariffs, and increasing inflation rates. As a result, this expert predicts that the overarching theme for the following year will be stagflation.

2025’s position of the Federal Reserve remains unclear, with Fed Chair Jerome Powell suggesting potential minimal reductions in interest rates for the upcoming year. Consequently, investors are hesitant to invest in speculative assets such as Dogecoin and Shiba Inu due to this uncertainty.

Some Positives For DOGE

In a recent post, crypto expert Kevin Capital highlighted some optimistic points about Dogecoin’s price. He pointed out that the DOGE/BTC chart appears intriguing and suggested that Dogecoin has rebounded to test the large demand area known as the “macro golden pocket.” Furthermore, he noted that Dogecoin is currently holding above the 100-day Exponential Moving Average (EMA), which Kevin Capital considers a very bullish signal.

According to Kevin Capital’s statement, it appears that the Moving Average Convergence/Divergence (MACD) is about to make a new upward crossover, suggesting that the Dogecoin price could potentially exhibit robustness compared to Bitcoin in the near term.

This year, Dogecoin has demonstrated remarkable resilience compared to the leading cryptocurrency. As of 2024, Dogecoin surpassed Bitcoin in performance, recording a year-to-date (YTD) increase of 245%.

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2024-12-31 15:42