Dogecoin and Shiba Inu prices have dropped significantly in the last 24 hours. This is partly the reason Jerome Powell’s speechThat has painted a bearish picture for crypto assets despite the announcement of a 25 basis point (bps) rate cut.
Why Did Dogecoin and Shiba Inu Prices Crash?
Dogecoin and Shiba Inu prices are down 5% in the last 24 hours. The price crash came despite the Federal Reserve announcing a rate cut of 25 bps. This is considered to be a major reason for the fall in price Fed Chair Jerome Powell speech, which painted a bearish picture for these crypto assets.
Powell pointed out in his speech that the Fed was currently ‘hockey’ despite the 25 bps rate cut. He also suggested that fewer rate cuts are likely in 2025, with three rate cuts already this year. The Fed is hawkish for Dogecoin and Shiba Inu prices as investors become more skeptical about investing in these risk assets.
In the case of Dogecoin, crypto analysts Kevin Capital mentioned That Mim coin’s technical indicators were currently bearish but added that this could be invalidated if the Fed took a dovish stance. However, this did not happen, meaning that the price of Dogecoin could fall further, as the fundamentals and technicals are bearish.
Meanwhile, on Powell’s take Strategic Wikipedia Reserve There is another factor that could contribute to the price crash of Dogecoin and Shiba Inu. The Fed chair said the US central bank is not allowed to hold bitcoin and is not calling for a change in the law. That statement caused the price of Bitcoin to drop below $100,000.
The prices of Dogecoin and Shiba Inu share a positive correlation with the flagship crypto, so it was expected that they would follow BTC as well. If Bitcoin’s decline continues, Dogecoin and Shiba Inu prices are also at risk of further declines.
What’s next for DOGE?
In a recent X post, Kevin Capital mentioned that the short-term bias is to the downside for the Dogecoin price. This comes after he revealed that Dogecoin has seen seven candles in a row and the macro has failed to move above the .786 Fib. The analyst added that DOGE is also missing the macro .5 Fib on the linear chart.
Meanwhile, Kevin also pointed out BitcoinConsidering the impact of the flagship crypto, Dogecoin and Shiba Inu prices may by extension. Bitcoin macro is rejecting at 1.703 level and printing a bearish daily candle with huge amount of liquidity to the downside, the analyst said.
However, the analyst is confident that these coins will still recover quickly. He said people are overreacting to Powell’s speech and that the dip will be bought. Accordingly, he commented that this is a normal market correction.
Featured image created with Dall.E, chart from Tradingview.com
