Dogecoin, Shiba Inu, and PEPE have all experienced significant drops in value today, reflecting a broader bearish sentiment for these prominent meme coins. This decline follows a critical announcement by Donald Trump regarding tariffs, leading to a considerable sell-off in the cryptocurrency market.
Why Dogecoin, Shiba Inu, And PEPE All Crashed
According to CoinMarketCap data, the recent price crash in Dogecoin, Shiba Inu, and PEPE can be traced directly back to Trump’s declaration of a 10% base tariff affecting all countries. Additionally, the President revealed customized tariff rates for major economies, including China, the European Union, and Japan.
The immediate reaction from investors was pronounced, as the announcement prompted widespread sell-offs across the cryptocurrency space. The potential for a trade war, fueled by these tariff increases, raises concerns about economic ramifications that could affect global markets. Experts have noted that such geopolitical tensions may lead to increased inflation or even a recession in the United States in the near future.
The sentiment surrounding these meme coins has soured, with many investors opting to reduce their holdings in risk assets like Dogecoin, Shiba Inu, and PEPE amidst fears of deteriorating economic conditions. Following Trump’s announcement, the sell-off dynamics have already driven these coins into negative territory.
Moreover, the US Federal Reserve is actively implementing quantitative tightening (QT) strategies to manage inflation, currently set at a target of 2%. In the event that Trump’s tariffs exacerbate inflation, the Fed might have to intensify its QT efforts. This potential action weighs heavily on investor confidence and has contributed to the sharp decline of prices for Dogecoin, Shiba Inu, and PEPE.
DOGE At Make-Or-Break Level
In a recent statement, crypto analyst Ali Martinez emphasized that Dogecoin is currently at a critical juncture. He argues that if the price sustains above $0.16, it could lead to a rally towards $0.57. Conversely, failing to hold this level may result in a rapid drop to $0.06.
This anticipated downturn could similarly influence Shiba Inu and PEPE, given their strong correlation with Dogecoin’s performance. As highlighted by analyst Master Kenobi, another crucial support level for Dogecoin is set at $0.17. If this support fails to hold, the prospects for a recovery become bleak, with expectations of a descent to the $0.14 support level marking an end to DOGE’s current bullish trends. Notably, Kenobi has also compared PEPE’s chart to that of ADA’s from 2021, suggesting the former may already be in a bear market.
The situation remains fluid as we monitor market reactions to both external economic pressures and internal cryptocurrency dynamics. Investors would do well to keep a close eye on these levels, as the next few days could prove crucial for the future trajectory of Dogecoin, Shiba Inu, and PEPE.
