The reasons for the sharp decline in Dogecoin and Shiba Inu prices are as follows 🔥🔥🔥

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Dogecoin and Shiba Inu prices have plummeted

Dogecoin and Shiba Inu have seen their prices drop over 5% in the past 24 hours. This is mainly due to comments from Federal Reserve Chairman Jerome Powell, who, despite a 25 basis point rate cut, painted a pessimistic picture for crypto assets, causing investors to doubt their investment in these risk assets.

Impact of Powell's remarks

Powell hinted that the Federal Reserve remains in a 'hawkish' stance and expects a reduction in the number of rate cuts by 2025. Additionally, he stated that the U.S. central bank should not hold Bitcoin, which led to Bitcoin's price falling below $100,000. Dogecoin and Shiba Inu are positively correlated with the flagship cryptocurrency and therefore face further downside risks.

Technical indicators and future trends

Cryptocurrency analyst Kevin Capital mentioned that the technical indicators for Dogecoin currently look bearish, with seven consecutive candles failing to break the macro 0.786 Fib. Additionally, Dogecoin has also lost the macro 0.5 Fib on the linear chart. However, the analyst believes these tokens will still regain bullish momentum, as the market has overreacted to Powell's comments, making it a buying opportunity at lower prices.

Impact of Bitcoin on Dogecoin and Shiba Inu

Considering that Bitcoin may impact the prices of Dogecoin and Shiba Inu, analysts pointed out that Bitcoin was rejected at the macro 1.703 level and printed a bearish daily chart. Despite the downside risks, analysts believe this is a normal market adjustment.

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