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 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 over 2% and 4%, respectively, today. This price decline can be attributed to 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 prices of Dogecoin and Shiba Inu tend to decline whenever there is bearish sentiment around the price of Bitcoin. Legendary Analyst Peter Brandt predicted that Bitcoin could fall to $78,000. Crypto analyst Rekt Capital also suggested that the flagship crypto could fall as low as $90,000 if it loses $94,250.
With the Bitcoin Price below $94,250, the crypto risks further declines. This sparked a wave of sell-offs in the crypto market, leading to a decline in the prices of Dogecoin and Shiba Inu. Top meme coins are at risk of further price drops if the flagship crypto falls to $90,000.
Meanwhile, there is a lot of uncertainty in the market, which has also led to a decline in the prices of Dogecoin and Shiba Inu. By 2025, market commentator Kobeissi’s letter noted that there will be a lot of new economic policies, new tariffs and rising inflation. With this in mind, the market commentator predicts that next year’s theme will be stagflation.
There is also uncertainty about the Federal Reserve’s stance for 2025, as Fed Chairman Jerome Powell has suggested there will be smaller interest rate cuts next year. Therefore, investors are skeptical about investing in risky assets like Dogecoin and Shiba Inu.
Some positives for DOGE
Crypto analyst Kevin Capital has provided some positives for the Dogecoin price. In an X post, he alluded to the DOGE/BTC Chartstating that it looks very interesting. The analyst revealed that Dogecoin came back and tested the golden macro pocket with a huge demand wick. The top meme coin also reportedly held the daily exponential moving average (EMA) of 100, which the analyst believes is a very bullish sign.
Kevin Capital added that the daily Moving Average Convergence/Divergence (MACD) appears to be getting a new upward crossover, indicating that Dogecoin price could show strength against Bitcoin for the foreseeable future.
Dogecoin has already shown impressive strength against the flagship crypto this year. DOGE has outperformed BTC in 2024 with a year-to-date (YTD) gain of 245%.
Featured image created with Dall.E, chart from Tradingview.com