Dogecoin (DOGE) and Shiba Inu (SHIB) Nosedive by Over 10% This Week, Will They Recover?

Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced price declines of over 10% this week. The downtrend experienced by these meme coins is likely

Dogecoin (DOGE) and Shiba Inu (SHIB) have both seen double-digit price declines this week. The downtrend experienced by the meme coins can be attributed to the macro side, which has instilled doubt in the minds of crypto investors.

US Fed’s Hawkish Stance Has Cast A Shadow Of Doubt

Dogecoin and Shiba Inu saw declines this week as a result of the US Fed’s stance on cutting interest rates. Consumer Price Index (CPI) inflation data came in lower than expected, which gave a boost to the crypto market. However, Federal Reserve Chair Jerome Powell’s speech cast a shadow of doubt, as he suggested that the central bank was not yet looking to cut interest rates.

His speech came after the US Fed decided to leave interest rates unchanged in the 5.25% to 5.5% range. This development saw investors shy away from investing in risky assets like cryptocurrencies. The crypto market, led by Bitcoin, saw a decline following Powell’s speech, with the flagship crypto dropping from around $70,000 to $66,000.

Dogecoin and Shiba bore the brunt of this development, considering that investors are more likely to invest in utility tokens than meme coins amid their fear of interest rates remaining unchanged for the rest of the year. Furthermore, data from IntoTheBlock shows that the leading meme coins still correlate with Bitcoin’s price. As such, they were expected to decline significantly alongside the flagship crypto.

Shiba Inu’s decline can also be attributed to the massive selling pressure the meme coin faced recently. As reported by Bitcoinist, Shiba Inu whales moved 4.29 trillion Shiba Inu tokens to Coinbase, suggesting that these investors were looking to offload their Shiba Inu holdings soon.

Dogecoin And Shiba Inu Set To Bounce Back

Crypto analyst CrediBULL Crypto recently noted that Dogecoin had reached a ‘make it or break it’ point. According to the analyst, this was good for the meme coin since Bitcoin had also dropped to its range lows simultaneously. He predicted that Dogecoin would rebound if Bitcoin enjoyed a price reversal.

Crypto analyst Kevin (formerly Yomi OG) also stated that Dogecoin’s chart was healthy and that the leading meme coin was set to trend up. This came after he revealed that the 12-day time frame on the Gaussian channel just recently flipped green on Dogecoin’s chart for the first time since December 2020. According to him, 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 from the burn tracking platform Shibburn shows that the Shiba Inu burn rate has spiked by over 863% in the last 24 hours.

News source：https://www.kdj.com/cryptocurrencies-news/articles/dogecoin-doge-shiba-inu-shib-nosedive-week-recover.html

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