As a seasoned crypto investor with a few years of experience under my belt, I’ve seen my fair share of market ups and downs. The recent declines in Dogecoin (DOGE) and Shiba Inu (SHIB) have left me feeling a mix of disappointment and cautious optimism.
This week, Dogecoin (DOGE) and Shiba Inu (SHIB) have seen their prices drop by more than 10%. The reason behind this downtrend for these meme coins is primarily due to broader market influences that have raised concerns among cryptocurrency investors.
The US Fed’s Hawkish Stance Has Cast A Shadow Of Doubt
Dogecoin and Shiba Inu experienced a downturn this week due to the US Federal Reserve’s position on potential interest rate reductions. However, a surprise drop in the Consumer Price Index (CPI) inflation figures brought optimism back to the crypto market. Nevertheless, Jerome Powell, the Fed Chairman, conveyed a more aggressive stance during his speech, indicating that the Central Bank was not imminently planning to reduce interest rates.
After the US Federal Reserve announced that they would keep interest rates at the range of 5.25% to 5.5%, I found myself and many other crypto investors feeling less enthusiastic about investing in risk assets like cryptocurrencies. The Fed’s decision came as a blow, causing a ripple effect throughout the market. Bitcoin, being the leading cryptocurrency, took a hit and dropped from around $70,000 down to $66,000 following Jerome Powell’s speech.
Investors have favored utility tokens over Dogecoin and Shiba Inu due to concerns about unchanged interest rates throughout the year. These meme coins have been disproportionately affected as a result, as shown by data from IntoTheBlock indicating a strong correlation between their prices and Bitcoin’s. Consequently, both Dogecoin and Shiba Inu were anticipated to experience substantial declines in tandem with Bitcoin.
The significant drop in Shiba Inu’s value is attributed, in part, to the intense selling pressure the meme coin experienced recently. According to Bitcoinist, large Shiba Inu investors transferred 4.29 trillion tokens of the cryptocurrency to Coinbase, indicating their intent to sell off their Shiba Inu holdings imminently.
Dogecoin And Shiba Inu To Bounce Back
As a crypto researcher, I’ve noticed that Dogecoin hit a critical juncture recently, according to CrediBULL Crypto’s analysis. Interestingly enough, this occurred when Bitcoin dipped down to its lower price range at the same time. Based on my observations and considering Bitcoin’s potential for a price recovery, I believe Dogecoin might bounce back as well.
Expert analysis by Kevin, formerly known as Yomi OG, indicated that Dogecoin’s chart was showing positive signs and was likely to experience an uptrend. This assessment stemmed from his observation that the 12-day indicator on the Gaussian channel had turned green for the first time since late 2020 on Dogecoin’s chart. Kevin explained that this development signaled an impending bullish trend for Dogecoin.
Despite the ongoing selling trend for Shiba Inu, the meme coin exhibits robust fundamentals, implying an imminent price rally. Notably, the burn tracking platform Shibburn reports a significant surge of approximately 863% in Shiba Inu’s burn rate over the past 24 hours.
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2024-06-15 00:11