Dogecoin and Shiba Inu Fail to Follow Bitcoin's Bullish Rally: Here's Why
Bitcoin (BTC) is experiencing a bullish rally, but Dogecoin and Shiba Inu are lagging behind. Why are these popular meme coins failing to capitalize on Bitcoin's success? Several factors are at play, including market sentiment, resistance levels, and macroeconomic uncertainties.
Dogecoin was trading for $0. with a dainty surge of 2.17% over the last 24 hours. Shiba Inu, on the other hand, was sailing on the same boat, with only a 2.29% rise. While any increase is positive, these gains are significantly smaller compared to Bitcoin's substantial upward movement.
Resistance Levels and Lack of Momentum
Despite the ongoing bullish momentum in Bitcoin (BTC), Shiba Inu has failed to breach a critical resistance level, which kept the altcoin from securing $0. This inability to break through key resistance is hindering Shiba Inu's progress. Dogecoin faces similar challenges, struggling to maintain upward momentum and break through its own resistance points.
Macroeconomic Concerns and the Federal Reserve
Uncertainty over interest rate cuts and the hawkish stance of the Federal Reserve could keep investors cautious, especially regarding riskier assets like meme coins. The broader economic outlook influences investment decisions, and the Federal Reserve's policies play a significant role.
Dogecoin, Shiba Inu, and Altcoin Performance Relative to Bitcoin
As Bitcoin claws back gains alongside Dogecoin, Shiba Inu, and major altcoins, the relative performance of the meme coins highlights a crucial difference. Bitcoin's established reputation and larger market capitalization provide a stronger foundation during rallies. Altcoins, including Dogecoin and Shiba Inu, often exhibit higher volatility and are more susceptible to market fluctuations.
Cointelegraph Explains the Lag
Outside of positive news headlines, Dogecoin and Shiba Inu price have failed to keep up with majors like Bitcoin and Ethereum. Cointelegraph explains why this divergence is occurring, pointing to factors such as: limited real-world utility, reliance on social media hype, and a lack of fundamental development compared to more established cryptocurrencies.
In conclusion, while Bitcoin's bullish rally is encouraging for the overall crypto market, Dogecoin and Shiba Inu are facing specific challenges that prevent them from fully participating in the gains. Resistance levels, macroeconomic uncertainties, and a reliance on hype are all contributing factors to their underperformance.