The prices of Dogecoin and Shiba Inu are facing challenges in holding onto their upward momentum as they’ve been experiencing notable pullbacks. This trend is largely attributed to broad market uncertainties fueled by macroeconomic factors, which have led to a bearish sentiment among investors.
What’s Causing Dogecoin and Shiba Inu Prices to Struggle?
According to CoinMarketCap, both Dogecoin and Shiba Inu have seen declines over the last 24 hours. These popular meme coins haven’t managed to kick off a sustained rally recently, facing continued downward pressure. This gloomy outlook stems from trade tariffs introduced by former President Donald Trump and retaliatory tariffs from other nations, raising fears of a looming trade war.
Trump recently declared a 25% tariff on all steel and aluminum imports. Previously, the U.S. also announced tariffs on imports from Canada, Mexico, and China. While a truce was reached with Canada and Mexico, tariffs on Chinese products persist.
In response, China has imposed its own tariffs on certain U.S. goods, effective as of today, further stoking anxieties over a potential trade conflict. Such trade wars typically cast a shadow on markets, potentially hampering economic growth, which explains why Dogecoin and Shiba Inu are under pressure.
Furthermore, Bloomberg has reported that Trump plans to announce ‘reciprocal tariffs’ later this week, adding another layer of uncertainty to the market and contributing to the struggles of these meme coins.
Aside from trade tensions, the U.S. Federal Reserve’s hawkish tone is another factor affecting these cryptocurrencies. As the Fed’s committee expresses ongoing concerns about inflation, there remains ambiguity around when interest rates may be cut again. Consequently, traders are hesitant to allocate funds towards risky assets like crypto, exerting more bearish pressure on Dogecoin and Shiba Inu prices.
Anticipated Rally for DOGE and Shiba Inu
Despite the short-term bearish trend, there’s a long-term expectation for Dogecoin and Shiba Inu to rally. A crypto analyst known as Trader Tardigrade forecasts that Dogecoin could potentially soar to $3.69. He points out that DOGE has been moving in a consistent parallel channel, suggesting that a future upward movement might reach that $3.69 mark.
Meanwhile, crypto analyst Javon Marks predicts that Shiba Inu might see a rise to as high as $0.0001553. He notes that SHIB has already shown bullish signals suggesting a continued upward trend and has broken through significant resistance, indicating a potential rally to $0.000081. Once this target is hit, Marks believes SHIB could then aim for $0.0001553.
Feature image from Unsplash, chart from Tradingview.com.
