(Ekta Mourya – FXStreet)
– 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.
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.
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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.
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:
Read Ethereum price scrambles to find footing after selling spree
