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Dogecoin

Here’s Why Dogecoin, Shiba Inu, And PEPE All Crashed

Scott Matherson
by Scott Matherson
6 months ago
·
Posted in Altcoins, Dogecoin
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Dogecoin, Shiba Inu, and PEPE have all crashed today, sparking a bearish sentiment for the foremost meme coins. This price crash occurred following Donald Trump’s tariff announcement, which led to a wave of sell-offs in the crypto market. 

Why Dogecoin, Shiba Inu, And PEPE All Crashed

CoinMarketCap data shows that Dogecoin, Shiba Inu, and PEPE have all crashed today. This occurred due to Trump’s announcement of a 10% base tariff on all countries. The US President didn’t stop there as he also announced customized tariff rates on certain countries, including heavyweights such as China, the European Union, and Japan.   

Related Reading: Here’s What Triggered The Dogecoin And Shiba Inu Price Crashes

Dogecoin, Shiba Inu, and PEPE immediately crashed on the back of this announcement as it sparked a wave of sell-offs among investors. Trump’s move is set to spark a trade war with these countries, bound to retaliate with counter tariffs, which could negatively impact the world economy. Experts have also raised the possibility of the US witnessing high inflation or recession in the coming months. 

Such development is bad for Dogecoin, Shiba Inu, and PEPE, as investors are likely to reduce their exposure to these risk assets in the event that inflation or recession starts to kick in. There is already a bearish sentiment among investors, which led to a wave of sell-offs following Trump’s announcement and ultimately the decline of these meme coins. 

It is worth mentioning that the US Federal Reserve is currently adopting quantitative tightening (QT) policies to help bring inflation down to its desired 2%. The US Central Bank may be forced to implement more QT measures if there are concerns that Trump’s move could lead to higher inflation. 

This possibility has probably weighed on investors’ minds, leading to the decline in Dogecoin, Shiba Inu, and PEPE prices. Meanwhile, the Fed has shown no intention to cut interest rates anytime soon, which is also bearish for Dogecoin, Shiba Inu, and PEPE. 

DOGE At Make-Or-Break Level

In an X post, crypto analyst Ali Martinez stated that Dogecoin is at a make-or-break level. He claimed that if $0.16 holds, then a rally to $0.57 could follow.

Related Reading: Dogecoin Price Mirroring This 2017 Pattern Suggests That A Rise To $4 Could Happen

However, if the foremost meme coin drops below this level, a drop to $0.06 becomes likely. Such a massive crash could also impact Shiba Inu and PEPE, as these meme coins share a strong positive correlation. 

Dogecoin
Source: Ali Martinez on X

Crypto analyst Master Kenobi had also warned that Dogecoin needs to bounce off the support at $0.17. He further remarked that if that doesn’t happen, the last hope lies at the $0.14 support level. The analyst suggested that a drop below that support line would mark the end of DOGE’s bull run. Interestingly, in another post, he stated that PEPE might already be in a bear market, comparing the meme coin’s current chart to ADA’s chart from 2021.

Dogecoin
DOGE trading at $0.16 on the 1D chart | Source: DOGEUSDT on Tradingview.com
Featured image from Adobe Stock, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Scott Matherson

Scott Matherson

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Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.

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