On Wednesday, the FED will announce the rate decision expected by the markets. However, almost all markets, along with the crypto money market, are waiting for the FED. Due to the tense environment, leaders such as Bitcoin and Ethereum, as well as Dogecoin and Shiba Inu, lost value. So what do analysts predict? What are the levels to follow for DOGE and SHIB? Let’s examine it together.
Prices fall before the Fed meeting
The Fed meets eight times a year to discuss monetary policy changes and evaluate the stability of prices in the economy. This meeting, called the FOMC, is meeting on Wednesday for the 75 basis point rate hike expected by the markets. Investors are risk-averse before the event. That is, it withdraws its capital from cryptocurrencies. Therefore, the top 30 cryptocurrencies witnessed a steep decline. Dogecoin and SHIB prices fell. Thus, the leading meme coins were unable to recoup their losses. Experts predict the Fed will raise 75 basis points on Wednesday. That’s why investors hold their funds. The current situation in the crypto markets is typically experienced ahead of the FOMC meeting. However, market participants expect a third mega increase in September 2022. Monetary policy is tightening faster than previously thought. Therefore, growth slows down. This environment is causing a capital outflow from meme coins and the DeFi ecosystem.
Leader in whale holdings SHIB and DOGE
Whale activity on the Dogecoin network has increased significantly after the meme coin’s dominance increased. Dogecoin and Shiba Inu are among the popular cryptocurrencies in whale portfolios, according to data from crypto data firm Santiment. Crypto investors who spend more than $100,000 per trade are accumulating DOGE. Accordingly, more than 100 large transactions take place daily on the Dogecoin network. However, SHIB is among the largest holdings of the top 100 Ethereum whales. According to data from WhaleStates, the whales hold $5.4 million worth of Shiba Inu. This equates to a total of 493.65 billion SHIB.
SHIB price may drop further
Analysts analyzed the Shiba Inu price. Accordingly, the meme coin invalidated the rising flag pattern. Thus, it revealed that the bears are under control. If some key levels are crossed, traders can expect further declines in SHIB price. The invalidation of the rising flag pattern resulted in the price falling. This technical formation consists of a flagpole and a flag. For SHIB, the explosive action of 34% between June 19 and June 25 created the flagpole. Consolidation, which emerged as higher lows and lower highs, formed a flag. Along with the model, the Shiba Inu posted an increase of 34%. However, the meme coin failed to maintain its bullish momentum. As a result, it fell 20% from its July 20 high to $0.0000131.
Moreover, the meme coin also sliced the $0.00106 to $0.0000111 demand zone. Now, it is heading towards a retest of the $0.0000095 support level. This barrier is the only thing standing between a 13% collapse and a resurgence of the bullish outlook. Therefore, traders should be prepared for a possible retest of $0.0000082 by the end of the week. On the other hand, it is possible for Shiba Inu price to produce a daily candle close above the $0.0000121 level. This will produce a higher peak and invalidate the bearish thesis. In such a case, the Shiba Inu will trigger a rally to the next meaningful resistance level at $0.0000139.
Dogecoin gives a bullish signal
Analysts believe that, unlike SHIB price, Dogecoin is ready to break out of the multi-year trendline. Dogecoin price has been falling since May 2021, as we have reported on Kriptokoin.com. Apart from a few jumps in the price chart, Dogecoin price has been falling steadily, losing 91.6% of its annual value. But now the meme coin is ready to recover.
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