Dogecoin (DOGE) and Shiba Inu (SHIB) We have seen price drops of over 10% this week. The downward trend they are experiencing meme coins this is probably due to the macro side which has created doubts in the minds of cryptocurrency investors.
The hawkish stance of the US Fed has cast a shadow of doubt
Dogecoin and Shiba Inu prices are believed to have fallen this week thanks to the US Fed’s stance on interest rate cuts. The Consumer Price Index (CPI) inflation data was lower than expected, which provided a boost to the cryptocurrency market. However, the chairman of the Federal Reserve Jerome Powell’s speech emphasized the Fed’s hawkish position, suggesting that the Central Bank is not planning to reduce interest rates yet.
His speech followed the US Fed’s decision to leave interest rates unchanged at between 5.25% and 5.5%. This situation has weakened investor confidence in investing in risky assets such as cryptocurrencies. The cryptocurrency market he leads Bitcoin experienced a decline following Powell’s speech, and the flagship cryptocurrency fell from around $70,000 to $66,000.
Dogecoin and Shiba have had to bear the brunt of this development, given that investors are more willing to invest in utility tokens than meme coins for fear of leaving interest rates unchanged throughout the year. In addition, data from IntoTheBlock shows that top meme coins still correlate with Bitcoin’s price. As such, they were expected to drop significantly along with the flagship cryptocurrency.
It is also believed that the decline of the Shiba Inu breed is due to the enormous sales pressure that the meme coin has faced recently. Bitcoinist reported that Shiba Inu whales transferred 4.29 trillion Shiba Inu tokens to Coinbase, which suggested that these investors wanted to get rid of their Shiba Inu holdings soon.
Dogecoin and Shiba Inu will bounce back
CrediBULL Crypto cryptocurrency analyst Lately mentioned that Dogecoin has reached a make-or-break point. The analyst said this is good for the meme coin as Bitcoin also dropped to all-time lows at the same time. He predicted that Dogecoin would rebound if Bitcoin experienced a price reversal.
Crypto Analyst Kevin (formerly Yomi OG) he also suggested that Dogecoin’s chart is fit and that the premier meme coin is poised for an uptrend. It came for him revelation that the 12-day time frame on the Gaussian channel recently turned green on the Dogecoin chart for the first time since December 2020. He stated that this indicates a bullish trend for Dogecoin.
Meanwhile, despite the selling pressure on Shiba Inu, the meme coin’s fundamentals paint a bullish picture and it shouldn’t be long before it sees a price rebound. Data With Shibburn combustion tracking platform shows that the Shiba Inu’s burning rate has increased by over 863% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
