Dogecoin and Shiba Inu prices have crashed overall in the last 24 hours Crypto market correction continues. This price drop is due to several developments including the festive season where several traders have chosen to stay away from the market during this period.
Why Dogecoin and Shiba Inu Prices Crashed
CoinMarketCap data shows that Dogecoin and Shiba Inu prices have plummeted by over 3% in the last 24 hours. The holidays have contributed to the price decline of major meme coins. Traders are known to stay away from this market during this time, which triggered a wave of sell-offs and led to these price drops.
Historical data also shows that it is not unreasonable for Dogecoin and Shiba Inu prices to see a significant correction during this period. DOGE has closed December in the red in two of the last three years, including during the 2021 bull market. Like Dogecoin, Shiba Inu price has also closed December in the red in two of the last three years.
Another reason why Dogecoin and Shiba Inu prices are plummeting is the increasing likelihood that Donald Trump won’t be able to pull it off Bitcoin strategic reserve as promised. Bitcoin began pricing in this initiative immediately after Trump won the US presidential election.
However, experts such as Bitwise’s Jeff Park have pointed out in recent days that it is unlikely that the Bitcoin reserve will be created in 2025 Bitcoin price has made a correction due to this development and has brought the prices of Dogecoin and Shiba Inu along with it. These meme coins have a strong positive price correlation with the flagship cryptocurrency. Therefore, it is normal for them to experience such price crashes when BTC corrects.
A price recovery is imminent
Despite this recent crash, Dogecoin and Shiba Inu prices are still expected to move upwards. Crypto analyst Master Kenobi predicted it that the Dogecoin price could reach a new high by January 2025. The analyst alluded to the 2021 bull run when DOGE experienced a bullish reversal in January 2021 after a significant price correction in December 2020.
Crypto analyst Trader Tardigrade also provided a bullish outlook for Dogecoin price, suggesting that the next phase will begin soon. In an X post, he explained that DOGE has started the bull run and revealed that the meme coin follows a certain bullish pattern.
In the meantime, Javon Marks provided a bullish outlook for Shiba Inu price, suggesting a bullish reversal is imminent. He explained that Shiba Inu has added bullish signals and the path to $0.000081 appears to continue. In line with this, he noted that a rally of over 234% is on the horizon.
Featured image created with Dall.E, chart from Tradingview.com