Emily Walker
Dogecoin and Shiba Inu are experiencing a notable price increase today, showing significant gains. This rise in price for these popular meme coins follows a new macroeconomic update that has brought some positive news to the cryptocurrency sector.
Reasons Behind the Price Increase of Dogecoin and Shiba Inu
According to CoinMarketCap data, both Dogecoin and Shiba Inu have shown considerable price growth today, signaling a rebound for these top meme coins. This recovery comes in light of recent US Producer Price Index (PPI) figures, which were less alarming than anticipated, consequently benefiting the crypto market.
The US PPI has shown a year-on-year increase of 3.3%, which is below the expected 3.5%. This positive inflation report has uplifted risk assets, including Dogecoin and Shiba Inu, which both responded favorably post-release. The PPI is one economic measure that the Federal Reserve monitors when considering interest rate changes; a lower-than-expected number suggests a downward trend in inflation, which is generally advantageous for riskier investments like meme coins.
Additionally, the recent rise in Bitcoin’s price above $97,000 contributed to the surge in Dogecoin and Shiba Inu. These meme coins often move in tandem with Bitcoin, reflecting its price shifts. Bitcoin’s strong reaction to the positive inflation data has also helped rally the entire cryptocurrency market.
The favorable inflation report has reignited interest among market players who had stayed away due to previous uncertainties. Particularly for Dogecoin investors, data from IntoTheBlock shows a significant 41% increase in large DOGE transactions over the past 24 hours, amounting to $23.35 billion. This spike in whale activity has played a role in the ongoing price recovery, as such investors typically wield considerable influence over market dynamics.
Future Outlook for Meme Coins
Experts in the crypto field have shared their projections regarding the future prices of Dogecoin and Shiba Inu. Analyst Kevin Capital mentioned in a recent post that if the market retains its optimistic trend, Dogecoin’s immediate target should be to surpass the .415 Fibonacci level. He believes that reaching this level might lead DOGE back to the significant price zone around $0.48.
Another analyst, Master Kenobi, has expressed an optimistic view for Dogecoin, predicting the potential for new highs around January 20, coinciding with Donald Trump’s inauguration.
Regarding Shiba Inu, analyst CW reported that the cryptocurrency has not dipped below the previous low. Thus, he noted that the target remains at $0.00041, suggesting SHIB may achieve this goal sooner than previously anticipated based on observed patterns in his accompanying chart.