Sharp Decrease in Shiba Inu Price: What Does the Fed's Interest Rate Hike Mean for Meme Coins in 2024

Shiba Inu (SHIB) is among the worst-performing coins, trading down 5.5% on Thursday as the broader market reels from the latest Fed policy decision. Increasing concerns about inflation and the central bank's 25-basis-point rate hike have dampened investor sentiment, affecting even meme coins. The Fed's interest rate hike move was predicted in advance, but the market was disappointed because the Fed ensured that there would be no significant interest rate cut in 2025. This more calculated approach has led to selling off stocks and leading digital assets such as Bitcoin (BTC), which have experienced significant price increases. Some currencies, often characterized by large price fluctuations, have been most affected. This happens despite meme coins seeing their market capitalization drop from $117 billion on Tuesday to $106 billion on Wednesday, a decrease of 9.4%, according to CoinMarketCap.

Shiba Inu breaks important levels Earlier this month, SHIB fell below the 21-day moving average (21DMA), and the current decline has pushed the price below the 50-day moving average (50DMA). These technical violations are often precursors to price declines. SHIB has broken below the uptrend line that has guided its recovery since mid-November. These declines raise the question of how much further this meme coin could lose. The next major support level has been identified at $0.00002160, implying a further decline of 11%. This level could drop below the 200DMA at around $0.000019 or even lower.

However, the long-term price increase trend from the lowest level in the summer of 2024 is still not broken for SHIB. However, the decline below this important trend line could lead to a further price decline. The decline of Shiba Inu is a sign of the overall trend of meme market and other speculative coins. Meme coins, mainly relying on community enthusiasm and hype, are more likely to be affected in a declining market. These coins are affected by the Fed's tight monetary policy stance as risk aversion declines across all financial markets. Development opportunities of Shiba Inu However, cryptocurrency supporters still have high expectations for further development of this industry. The cryptocurrency field is likely to witness changes in the regulatory environment after the Trump administration takes office. In addition, there are increasing global discussions regarding strategic Bitcoin reserves, indicating the continuous integration of traditional organizations and governments into the world of cryptocurrencies.

These macroeconomic and geopolitical trends create good opportunities for the comeback of meme coins. Shiba Inu is one of the key players in this field that can benefit from the growing attention towards memecoins and other low market cap tokens. Traders interested in holding this token for the long term may consider the current SHIB price as an entry point. Meme coins have a history of increasing in value when they dip, and Shiba Inu has the characteristics to become the next big trend in this space. The rest of the cryptocurrency market is still being affected by issues such as macroeconomic instability and legal risks. Stricter regulations worldwide may impact meme coins more than other types of currencies as most of them are not backed by organizations. Conclusion The recent 5.5% decline of Shiba Inu highlights the danger of speculative assets in the current market environment. However, the strength of the community and the project's ecosystem integration provide reasons for hope. With the market adapting to the Federal Reserve's conservative stance and anticipating a crypto-friendly US government, Shiba Inu could become one of the biggest winners in the future. Those willing to endure short-term losses may see the current decline of SHIB as a great opportunity to invest in a promising coin. DYOR! #Write2Win #Write&Earn $SHIB {spot}(SHIBUSDT)