The prices of Dogecoin and Shiba Inucoin have fallen sharply in the last 24 hours, mainly due to the speech of Federal Reserve Chairman Jerome Powell. Although the Fed announced a 25 basis point interest rate cut, Powell's remarks brought negative sentiment to the prospects of crypto assets, causing the prices of these currencies to plummet.
Why did the prices of Dogecoin and Shiba Inucoin plummet?
In the past day, the prices of both Dogecoin and Shiba Inucoin have fallen by more than 5%. The sharp drop in prices came despite the Federal Reserve’s announcement of a 25 basis point rate cut. Many believe that a major reason for the plunge was Powell’s speech, which painted a pessimistic picture for the future of crypto assets.
Powell said in his speech that despite the 25 basis point rate cut, the Fed still maintains a "hawkish" stance. He also revealed that the number of rate cuts in 2025 may decrease, and three rate cuts have been made this year. Such a hawkish attitude is not good for the prices of Dogecoin and Shiba Inu coin, as investors' interest in these high-risk assets has weakened.
Regarding Dogecoin, cryptocurrency analyst Kevin Capital mentioned that its technical indicators currently look bearish, although he also said that the situation may change if the Federal Reserve takes a more dovish stance. But this dovish stance has not appeared, so the price of Dogecoin may continue to fall because its fundamentals and technicals are pointing downward.
In addition, Powell's remarks on Bitcoin also had an impact on the prices of Dogecoin and Shiba Inu. He mentioned that the US central bank does not intend to hold Bitcoin and will not change relevant laws, which directly caused the price of Bitcoin to fall below $100,000. Since the prices of Dogecoin and Shiba Inu are strongly correlated with Bitcoin, as Bitcoin falls, their prices also fall.
What’s next for DOGE?
Kevin Capital mentioned in a recent X post that Dogecoin may continue to fall in the short term. He pointed out that Dogecoin has failed to break through the 0.786 Fibonacci support level for seven consecutive candles. And on the linear chart, Dogecoin has also fallen below the 0.5 macro Fibonacci support level.
He also analyzed the trend of Bitcoin, believing that Bitcoin encountered rejection at the macro level of 1.703, and the daily chart showed a bearish pattern, and long liquidity also showed a downward trend.
Despite this, Kevin believes that these tokens still have the potential to resume their upward momentum. He believes that the market's reaction to Powell's speech was too intense, and there may be opportunities to buy on dips in the short term. He also said that this is just a normal adjustment in the market.
