The prices of Dogecoin and Shiba Inu have fallen sharply in the past 24 hours. This was in part due to Jerome Powell's speech, which painted a pessimistic outlook for crypto assets despite announcing a 25 basis point (bps) rate cut.

The price of both Dogecoin and Shiba Inu has fallen more than 5% in the past 24 hours. The price plunge came despite the Federal Reserve announcing a quarter-point interest rate cut. It is believed that a major reason for this price collapse is a speech by Federal Reserve Chairman Jerome Powell, which painted a pessimistic outlook for these crypto assets.

In his speech, Powell signaled that the Fed is still in a "hawkish" position despite a quarter-point rate cut. He also said there could be fewer rate cuts in 2025, having already cut rates three times this year. The hawkish stance of the Fed has been negative for the price of Dogecoin and Shiba Inu, as investors have become more skeptical about investing in these risky assets.

In the case of Dogecoin, cryptocurrency analyst Kevin Capital has mentioned that the meme's technical indicator is currently bearish, but added that it could be inoperative if the Fed takes a dovish stance. However, this has not happened, which means that the price of Dogecoin could even plummet further, as both fundamentals and technicals are bearish.

At the same time, Powell's views on the strategic Bitcoin reserve are another factor contributing to the collapse in the price of Dogecoin and Shiba Inu. The Fed chairman mentioned that the U.S. central bank is not allowed to hold bitcoin and is not seeking to change the law. The announcement sent the price of bitcoin below $100,000.

The prices of Dogecoin and Shiba Inu are positively correlated with the flagship cryptocurrency, so expect them to follow suit as BTC corrects. If Bitcoin continues to fall, then Dogecoin and Shiba Inu prices are also at risk of falling further.

What's next for DOGE? In a recent X post, Kevin Capital mentioned that the price of Dogecoin is biased to the downside in the short term. He revealed that Dogecoin has appeared seven candles in a row, but failed to break through the macro 0.786 Fib. The analyst added that Dogecoin also lost macro 0.5 Fib on a linear chart.

At the same time, Kevin also mentioned Bitcoin, considering that the flagship cryptocurrency could have an impact on the price of Dogecoin and Shiba Inu. The analyst said that Bitcoin is rejected at the macro 1.703 level and prints a bearish daily chart, while there is a lot of bullish liquidity on the downside.

However, analysts believe these tokens will still regain their bullish momentum. He said people were overreacting to Powell's speech and buying the dips. In line with this, he commented that this was a normal market correction.