Meme Coins DOGE and SHIB Face Market Pressure

Macroeconomic concerns disrupt cryptocurrency markets amid escalating tensions and trade conflicts.

The market status sees both Dogecoin and Shiba Inu facing notable declines. As of May 17, 2025, Dogecoin is trading at approximately $0.2293 while Shiba Inu is experiencing significant value losses. Funding rates for these digital currencies have turned negative, suggesting traders forecast further downturns. According to Binance, these negative sentiments echo broader concerns in the meme coin ecosystem.

“The primary driver behind the recent meme coin selloff appears to be macroeconomic concerns, particularly related to trade tensions.”

— Michael Brown, Economic Analyst at Mitrade

Macroeconomic factors play a crucial role in this downturn. With the implementation of a 25% tariff on auto imports by President Trump, market uncertainties escalate. This is compounded by the “Liberation Day” announcement regarding additional tariffs, which heightens the prospects of a global trade war. Countries like China, Canada, and France have signaled retaliatory measures, adding to investor anxiety and potentially impacting high-risk investments like meme cryptocurrencies.

Financial predictions contrast the immediate market reactions. CoinCodex projects Dogecoin could potentially rise by 170.4% in 2025, reaching an average price of $0.44. However, Emily Johnson, a Cryptocurrency Expert at CoinCodex, said, “Despite the current bearish trend, we predict a potential rally for DOGE, possibly reaching highs of $0.70 in 2025.” Long-term analyses suggest potential recovery pathways but emphasize the volatile nature of these assets during periods of heightened economic uncertainty. Historical trends indicate that meme coins, including DOGE and SHIB, often experience heightened volatility during broader market disruptions.