Dogecoin and Shiba Inu bleed in Pre-FOMC crypto snoozefest


Share:
  • Crypto market activity is typical of prior instances where investors awaited a Federal Reserve rate hike decision. 
  • Investors are risk-averse, pulling capital out of volatile crypto assets, meme coins, ahead of the expected 75 bps hike on Wednesday. 
  • Analysts believe Dogecoin is working to break out of its multi-year downtrend. 

Dogecoin and Shiba Inu prices plummeted alongside Bitcoin, Ethereum and other cryptocurrencies in the top 30 ahead of the FOMC meeting. Analysts are optimistic, however, that Dogecoin will breakout from its multi-year trendline. 

Also read: Dogecoin copycat gets rug pulled plummets 99% overnight

Dogecoin and Shiba Inu prices decline ahead of upcoming rate hike

The Federal Open Market Committee meets eight times a year to discuss monetary policy changes and reviews economic and financial conditions to assess the stability of prices in the economy. The FOMC is meeting on Wednesday for an anticipated 75 bps rate hike. Investors were risk averse ahead of the event and pulled out capital from cryptocurrencies; therefore, assets in the top 30 witnessed a steep decline. 

Dogecoin and Shiba Inu prices plummeted, and the meme coins failed to recoup losses two weeks ago. Investors are sitting on their hands as experts have predicted a 75 bps hike on Wednesday. The current condition in the crypto markets is considered typical ahead of the FOMC meeting. 

Market participants have anticipated a third mega hike in September 2022. Monetary policy is tightening quicker than thought, and growth is slowing down. This environment has resulted in capital outflow from meme coins and the DeFi ecosystem. 

Dogecoin sees renewed interest from whales 

Whale activity on the Dogecoin network has increased significantly after the meme coin’s dominance spike. Based on data from crypto intelligence firm Santiment, Dogecoin and Shiba Inu are among the popular cryptocurrencies in whale portfolios. 

Crypto investors who spent over $100,000 per transaction are accumulating DOGE, and there are 100+ large transactions daily on the Dogecoin network. 

Ethereum whales own 493.65 billion Shiba Inu tokens

Shiba Inu is one of the largest non-Ethereum holdings of the top 100 Ethereum whales. Based on data from WhaleStates, whales hold a total of 493.65 billion Shiba Inu worth $5.4 million. 

Top 10 holdings of 100 largest Ethereum whales

Top 10 holdings of 100 largest Ethereum whales

Analysts are bullish on Dogecoin and Shiba Inu recovery

Analysts at FXStreet believe that Dogecoin is ready to break out of its multi-year trendline. Since May 2021, the Dogecoin price has declined rapidly, but now the asset is ready to recover. Except for a few bounces in its price chart, Dogecoin price has steadily declined, losing 91.6% of its value year on year. For target prices and further information on the Dogecoin chart, check the video below:

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

This is why a mere 15% rally in Lido DAO price could be a game-changer for LDO holders

This is why a mere 15% rally in Lido DAO price could be a game-changer for LDO holders

Lido DAO price is following the rest of the market due to the regulatory events that transpired in the last few days. However, the DeFi token is generally unlikely to pursue the path set by any other cryptocurrencies, including the likes of Bitcoin. This might play in favor of LDO.

More Lido News

LINK holders opt to sell as Chainlink price falls by 9% in a week, new investors on the rise

LINK holders opt to sell as Chainlink price falls by 9% in a week, new investors on the rise

Chainlink price, after following the broader market cues, is nearing a key support level that was last visited by the coin in January this year. This has discouraged LINK holders to the point where selling has become a preferred option. However, newer investors are countering this selling by accumulating, preventing a severe decline.

More Chainlink News

Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism (OP) price appears to have found support after a new buyer congestion zone came into effect to prevent the free fall. Accordingly, the Ethereum Layer 2 (L2) token is trading horizontally, giving bulls time to accumulate OP at affordable rates.

More Optimism News

Binance CEO addresses chat records disclosed by the SEC

Binance CEO addresses chat records disclosed by the SEC

Binance CEO Changpeng Zhao has issued an internal address to company staff, asking them to focus on work and developing products people can use. The internal memo comes after the United States Securities and Exchange Commission (SEC) disclosed chat records between Binance employees in an attempt to support its case against the largest crypto exchange by trading volume.

More Cryptocurrencies News

Top 3 cryptocurrencies that outperformed Bitcoin, Ethereum this week

Top 3 cryptocurrencies that outperformed Bitcoin, Ethereum this week

The US Securities and Exchange Commission’s (SEC) crackdown on cryptocurrencies triggered a correction in the prices of Bitcoin, Ethereum and several altcoins with large market capitalization. 

Read full analysis

BTC

ETH

XRP