#CryptoTariffDrop #VoteToListOnBinance
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Today, Dogecoin, Shiba Inu, and PEPE collapsed, raising a sense of pessimism towards leading meme coins. This price collapse followed Donald Trump's announcement of tariff increases, leading to a wave of intense selling in the cryptocurrency market.
Why did Dogecoin, Shiba Inu, and PEPE collapse?
Data from CoinMarketCap shows the collapse of Dogecoin, Shiba Inu, and PEPE today. This came following Trump's announcement of a 10% tariff on all countries. Not only did the U.S. president do this, but he also announced specific tariffs on certain countries, including major nations like China, the European Union, and Japan.
Related reading: Here's what caused the collapse of Dogecoin and Shiba Inu prices
Dogecoin, Shiba Inu, and PEPE collapsed immediately following this announcement, sparking a wave of intense selling among investors. Trump's move is expected to ignite a trade war with these countries, which will retaliate with counter-tariffs, potentially negatively impacting the global economy. Experts have also raised the possibility that the U.S. may experience rising inflation or an economic recession in the coming months.
This development is detrimental to Dogecoin, Shiba Inu, and PEPE, as investors are likely to reduce their exposure to these risky assets if inflation or recession begins. There is already a sense of pessimism among investors, leading to a wave of selling after Trump's announcement, ultimately resulting in the decline of these cryptocurrencies.
It is worth noting that the U.S. Federal Reserve is currently adopting quantitative tightening (QT) policies to help bring inflation down to the desired level of 2%. The U.S. central bank may have to implement more tightening measures if there are concerns that Trump's move could lead to rising inflation.
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This possibility may have affected investors, leading to a decline in the prices of Dogecoin, Shiba Inu, and PEPE. At the same time, the Federal Reserve has shown no intention of lowering interest rates anytime soon, which also bodes ill for the prices of Dogecoin, Shiba Inu, and PEPE.
DOGE at the crossroads of success or failure
In a post on X, crypto analyst Ali Martinez stated that Dogecoin is at a critical level. He claimed that if the price holds at $0.16, a rise to $0.57 could follow.
Related reading: This Dogecoin price reflects the pattern from 2017, indicating a potential rise to $4
However, if the value of the main meme coin drops below this level, it is likely to fall to $0.06. This massive collapse could also affect Shiba Inu and PEPE, given the strong positive correlation between these two coins.
Crypto analyst Master Kenobi also warned that Dogecoin needs to bounce back from the support level at $0.17. He added that if that doesn't happen, the last hope would be at the support level of $0.14. The analyst noted that a drop below this level would signify the end of Dogecoin's bullish run. Interestingly, he mentioned in another post that PEPE could already be in a bear market, comparing its current chart to an ADA chart from 2021.
