In the last day, the cryptocurrency market has seen notable declines, particularly impacting Dogecoin and Shiba Inu.
A combination of factors has driven this downturn, with seasonal trends playing a significant role; many traders are choosing to take a break during the holiday season.
Market Trends and Historical Behavior
Data from CoinMarketCap reveals that both Dogecoin and Shiba Inu have dropped by over 3% just within the past 24 hours.
Historically, this time of year has been characterized by lower trading volumes, often leading to sell-offs in the market.
Reviewing past market behavior, it becomes evident that the festive period often brings substantial corrections for both Dogecoin and Shiba Inu.
For instance, Dogecoin has ended December on a down note in two of the last three years, even amid the bullish market of 2021.
Shiba Inu isn’t far behind, showcasing a similar trend with two out of the last three years ending negatively.
Impact of Political Developments
Another factor influencing the recent downturn is the skepticism surrounding Donald Trump’s proposed Strategic Bitcoin Reserve.
Initially, Bitcoin experienced a price spike following Trump’s election, largely fueled by optimism regarding this initiative.
However, many analysts now believe that this reserve might not materialize by 2025, which has led to a drop in Bitcoin’s price and consequently affected the values of Dogecoin and Shiba Inu.
Despite these challenges, there are signs indicating that both Dogecoin and Shiba Inu may bounce back.
Crypto analyst Master Kenobi is optimistic about Dogecoin, predicting a potential rally that could see the coin reach new heights by January 2025.
He draws parallels to previous bull runs, particularly referencing the recovery following significant December price drops.
Future Prospects for Dogecoin and Shiba Inu
Similarly, Trader Tardigrade sees potential in Dogecoin’s trajectory, suggesting that the cryptocurrency appears to have entered a new upward phase marked by a recognizable bullish pattern.
On the other hand, analyst Javon Marks is maintaining a positive outlook for Shiba Inu, forecasting a climb toward $0.000081, which would represent a substantial increase of over 234%.
In summary, while the current corrections may pose challenges, the resilience of Dogecoin and Shiba Inu might soon bring about recovery, igniting hope among traders as the market navigates through the holiday period.
Source: Bitcoinist
