The Dogecoin and Shiba Inu prices have crashed in the last 24 hours as the broader crypto market correction continues. This price crash is due to several developments, including the holiday season, with several traders choosing to stay out of the market during this period.
Why The Dogecoin And Shiba Inu Prices Crashed
CoinMarketCap data shows that Dogecoin and Shiba Inu prices have crashed over 3% in the last 24 hours. The holiday season has contributed to the price crash for the foremost meme coins. Traders are known to stay out of this market during this period, which sparked a wave of sell-offs, leading to these price declines.
Historical data also shows that it isn’t out of place for the Dogecoin and Shiba Inu prices to record a significant correction during this period. DOGE has closed December in the red in two out of the last three years, including during the 2021 bull run. Like Dogecoin, the Shiba Inu price has also closed December in the red in two out of the last three years.
Meanwhile, another reason Dogecoin and Shiba Inu prices could have crashed is the increasing likelihood that Donald Trump will not create the Strategic Bitcoin Reserve as promised. Bitcoin began to price into this initiative right after Trump won the US presidential elections.
However, in the past few days, experts like Bitwise’s Jeff Park have suggested that it is unlikely that the Bitcoin Reserve will be created in 2025. The Bitcoin price has corrected on the back of this development, dragging the Dogecoin and Shiba Inu prices alongside. These meme coins share a strong positive price correlation with the flagship crypto. As such, it is normal for them to experience such price crashes as BTC corrects.
A Price Recovery Is On The Cards
Despite this recent crash, the Dogecoin and Shiba Inu prices are still expected to witness a bullish reversal. Crypto analyst Master Kenobi predicted that the Dogecoin price could reach a new peak 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 the Dogecoin price, suggesting that the next phase will begin soon. In an X post, he stated that DOGE has started the bull run, revealing that the meme coin follows a particular bullish pattern.
Meanwhile, Javon Marks provided a bullish outlook for the Shiba Inu price, suggesting that a bullish reversal was imminent. He stated that Shiba Inu has added bullish signals, and the road to $0.000081 looks like it will continue. In line with this, he remarked that a rally of over 234% is on the cards.
Featured image created with Dall.E, chart from Tradingview.com
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