The prices of popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are currently facing significant downward pressure due to growing concerns about a potential trade war. Recent tariffs implemented by the US and retaliatory measures from other countries have sparked market uncertainty and bearish sentiment among investors.
According to CoinMarketCap data, both DOGE and SHIB have experienced price declines over the past 24 hours and have struggled to sustain any significant rallies in recent times. The bearish outlook for these meme coins can be attributed to various factors, including the 25% levy on steel and aluminum imports announced by US President Donald Trump, as well as tariffs on imports from Canada, Mexico, and China.
Although agreements have been reached with Mexico and Canada to pause imports, the tariffs on Chinese goods remain in place. In response, China has implemented import taxes on some US goods, further escalating trade tensions and raising concerns about a potential trade war that could slow economic growth and negatively impact the cryptocurrency market.
Market Uncertainty and Federal Reserve’s Stance
Adding to the market uncertainty, Bloomberg reported that Trump is set to announce ‘reciprocal tariffs’ this week, which has contributed to the struggling prices of Dogecoin and Shiba Inu. Moreover, the US Federal Reserve’s hawkish stance and ongoing concerns about inflation have made traders skeptical about allocating capital to risk assets like cryptocurrencies, creating a bearish environment for DOGE and SHIB.
Long-Term Bullish Predictions for DOGE and SHIB
Despite the current bearish sentiment, some analysts remain optimistic about the long-term prospects of Dogecoin and Shiba Inu. Crypto analyst Trader Tardigrade predicts that DOGE could reach $3.69, based on its movement along a parallel channel with alternating overshoots. Similarly, analyst Javon Marks believes that SHIB could rally to as high as $0.0001553, citing confirmed bull signals and a breakout from a larger resisting trend.
While the short-term outlook for Dogecoin and Shiba Inu remains bearish due to trade war concerns and market uncertainty, the long-term potential for these meme coins cannot be ignored. As the market navigates through these challenges, investors should keep a close eye on developments in global trade relations and the Federal Reserve’s monetary policy decisions.
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Tags: Dogecoin, Shiba Inu, DOGE, SHIB, Trade War, Market Uncertainty, Federal Reserve
Source: https://bitcoinist.com/dogecoin-and-shiba-inu-struggling/