SHIB, DOGE and Cardano unexpectedly fell today despite on-chain data showing that overall purchasing activity remained positive.
Why are Bitcoin, SHIB, DOGE and Cardano falling?
The drop came amid a global sell-off sparked by the Fed’s hawkish comments. Fed Chairman Lael Brainard said it was “important” to contain inflation and hinted that in May the central bank would trim its balance sheet. This triggered selling pressure in the market as investors feared that a restrictive environment could lead to an economic downturn. In a nutshell, this weakness directly reflected in Bitcoin is 5% in Ethereum (ETH), 3.85% in Shiba Inu (SHIB), 7.21% in Cardano (ADA) and 2.55% in Dogecoin (DOGE) in the last 24 hours. led to significant retreats. As the hype around Dogecoin faded rapidly, the depreciation reached double digits in its last days…
As we have mentioned in the news as Cryptokoin.com, Elon Musk bought 9.5% of Twitter shares. After its acquisition and rumors of Dogecoin implementation on the platform, the price of the leading meme coin rose 21% in a few hours, but has already lost a large part of its value. The reasons for the double-digit depreciation specific to Dogecoin can be examined in 3 items, according to analyst Arman Shirinyan:
Why is Dogecoin falling?
The first potential reason behind Dogecoin’s rapid pullback can be attributed to the general belief of investors that you should buy when the news about Doge comes out and sell after the bullish news in the public domain.
Technical price movements are another factor that can be attributed to DOGE’s unfavorable price performance. Critical resistance of the 200-day exponential moving average Dogecoin. DOGE has moved below the moving average for the past 124 days and failed to break it on the first try. Also, for fifteen months long-term traders have been experiencing the downtrend and have lost 50% since reaching the local top in December. Since the meme coin has failed to deliver positive results, some investors prefer to sell their holdings after opening positions close to ATH when price increases cover some of their losses.
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