Prices of Dogecoin and Shiba Inu are declining today as the year comes to an end, generating a bearish outlook among investors. This decline in prices is attributed to the mood in the wider cryptocurrency market and macroeconomic factors.
Reasons Behind Today’s Drop in Dogecoin and Shiba Inu Prices
Data from CoinMarketCap reveals that the prices of Dogecoin and Shiba Inu have decreased by over 2% and 4%, respectively, today. This decline is linked to the sluggish Bitcoin price movements and macroeconomic conditions. Both Dogecoin and Shiba Inu are noted for having a strong positive correlation with Bitcoin prices.
Consequently, whenever there is a bearish attitude surrounding Bitcoin, the prices of Dogecoin and Shiba Inu typically decline. Renowned analyst Peter Brandt has predicted a potential Bitcoin drop to as low as $78,000. Cryptocurrency analyst Rekt Capital also speculated that the leading cryptocurrency could plummet to as low as $90,000 if it falls below $94,250.
With the Bitcoin value sitting below $94,250, it faces the risk of more declines. This situation has triggered a wave of sell-offs in the cryptocurrency market, contributing to the fall in Dogecoin and Shiba Inu prices. The leading meme coins appear to be vulnerable to further price drops if Bitcoin decreases to around $90,000.
Simultaneously, a considerable amount of uncertainty exists in the market, contributing to the decline in Dogecoin and Shiba Inu prices. As 2025 approaches, market analyst The Kobeissi Letter pointed out that numerous new economic policies, tariffs, and rising inflation will emerge. Accordingly, this market analyst forecasts that next year’s theme will be stagflation.
Additionally, there are questions surrounding the Federal Reserve’s approach for 2025, as Fed Chair Jerome Powell indicated there will be lower interest rate cuts in the coming year. As a result, investors are hesitant about putting money into riskier assets like Dogecoin and Shiba Inu.
Some Positive Aspects for DOGE
Cryptocurrency analyst Kevin Capital noted some positives for Dogecoin’s value. In a post on X, he referenced the DOGE/BTC chart, suggesting that it appears quite intriguing. The analyst also mentioned that Dogecoin has revisited and tested the macro golden pocket with a significant demand wick. Moreover, the leading meme coin is reportedly maintaining the 100 Exponential Moving Average (EMA) on the daily chart, which the analyst claimed signifies a bullish development.
Kevin Capital further stated that the daily Moving Average Convergence/Divergence (MACD) looks set to undergo a fresh upward cross, indicating that Dogecoin may demonstrate strength against Bitcoin in the foreseeable future.
Dogecoin has already displayed remarkable strength relative to the leading cryptocurrency this year. DOGE surpassed BTC in 2024 with a year-to-date (YTD) increase of 245%.
Featured image generated with Dall.E, chart from Tradingview.com
