The Shiba Inu (SHIB) price dumped around 7% on Wednesday as meme coins took a beating in wake of a hawkish Fed policy announcement that dented sentiment across financial markets.
The US Federal Reserve axed interest rates by 25bps as expected, but played down the prospect of substantial further easing in 2025.
US equity markets and major cryptos like Bitcoin (BTC), which had probably been looking for an excuse to pull back following their very strong performance in recent weeks, were dumped.
And this bled across in the highly speculative crypto meme coin space, with meme coin total market cap collapsing to $106 billion from $117 billion on Tuesday, per CoinMarketCap.
Crypto bulls will likely remain confident that there will be a reversal of the market's fortunes into the year's end.
That's because the incoming Trump administration is set to be the most pro-crypto in history, a complete 180-degree shift from the anti-crypto stance of the outgoing Biden administration.
And global crypto adoption is also accelerating, not least thanks to increased chatter about the establishment of Bitcoin strategic reserves in nations all around the world.
That means there is fertile ground for the return of a new meme season, with Shiba Inu likely to lead any such rally.
That said, the latest developments in the Shiba Inu price chart are concerning. Is a short-term price crash right around the corner?
Bearish Chart Developments – Is the Shiba Inu Price About to Crash?
The Shiba Inu price's latest drop has seen it slump under its 50DMA, after falling below its 21DMA earlier in the month.
Moreover, SHIB has now also broken to the south of an upward trend channel in play since mid-November.
All that suggests a drop back towards the next major support zone around $0.00002160 is on the cards, a further 11% decline from current levels.
However, things would only really get bad for Shiba Inu if the meme coin broke below its uptrend from its summer 2024 lows.
That could open the door to a retest of the 200DMA under $0.000019 or lower.
But SHIB bulls should not fear. Yes, maybe the Fed won't cut interest rates as much as the market wants in 2025.
But this is not the end of the world for crypto markets, nor meme coins like Shiba Inu.
As noted, the US crypto industry is about to enter a new golden age and global adoption is accelerating.
Bitcoin may be the initial beneficiary of this, but this will eventually work its way into the altcoin and meme coin space.
As a leading name in the space with a massive community and vast web3 ecosystem, Shiba Inu is going to attract substantial demand.
To, for investors able to hold through some near-term turbulence, Shiba Inu price dips are a great opportunity to accumulate this high potential meme coin.
The post Shiba Inu Price Dumps 7% After Fed Announcement – Meme Coin Market Crash Incoming? appeared first on Cryptonews.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
