The Dogecoin and Shiba Inu prices have recorded a significant crash in the last 24 hours, a development that has sparked a bearish outlook for the foremost meme coins. This price crash has occurred due to macro events that have created market uncertainty.
What Triggered The Dogecoin And Shiba Inu Price Crashes
CoinMarketCap data shows that the Dogecoin and Shiba Inu prices have crashed by over 3% and 2%, respectively. This price crash has been triggered by macro events, including Donald Trump’s latest tariffs. On Wednesday, the US President announced a 25% tariff on auto imports, which has shaken up the market like other tariffs announced earlier.
These latest tariffs have again raised concerns about a trade war, which is bearish for the crypto market. As such, market participants look to be derisking by reducing their exposure to these crypto assets, which is why the Dogecoin and Shiba Inu prices have crashed. Moreover, the market is also reacting to the reciprocal tariffs, which will be implemented starting April 2nd.
Donald Trump has labelled April 2 ‘Liberation Day,’ hinting that the tariffs he will announce will be severe. Countries such as China, Canada, and France have made it clear that they would respond with countermeasures, further heightening tensions around this trade war. Depending on the severity of these tariffs, the Dogecoin and Shiba Inu prices risk suffering further crashes.
Another macro event that has triggered the Dogecoin and Shiba Inu price crashes is the PCE inflation data, which was released yesterday. The PCE index rose 0.3% in February, which aligned with expectations. However, the core PCE index raised concerns, as it rose 2.8% annually, higher than expectations.
This development is bearish for Dogecoin and Shiba Inu prices because the PCE is known as the US Federal Reserve’s inflation gauge. The Fed is unlikely to ease monetary policies and cut interest rates if it feels that inflation is again rising.
DOGE is On Shaky Ground At The Moment
Crypto analyst Master Kenobi highlighted the fact that the Dogecoin price is on shaky ground at the moment. He remarked that DOGE needs to bounce off the red trend line at $0.177, just like it did in September last year.
If that doesn’t happen, the analyst stated that the last hope lies with the yellow support line at around $0.14. He indicated that a drop below that support line could mark the end of the meme coin’s bull cycle.
A potential decline in the Dogecoin price also puts the Shiba Inu price at risk due to their positive correlation. IntoTheBlock data shows that most SHIB on-chain metrics, including large transactions, are currently bearish. The drop in large transactions indicates that SHIB whales aren’t bullish on the meme coin and are choosing to stay on the sidelines for now.
Featured image from iStock, chart from Tradingview.com
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