Bitrabo Editorial
Recent activity has seen both Dogecoin (DOGE) and Shiba Inu (SHIB) experience a notable increase in value over the past day. This uptick is largely attributed to positive macroeconomic developments, and onchain metrics reveal that both large and smaller investors are showing renewed interest in these meme currencies.
Factors Behind the Price Surge of Dogecoin and Shiba Inu
The substantial rise in Dogecoin and Shiba Inu prices can be linked to the US Federal Reserve’s decision to cut interest rates by 50 basis points. This has created an optimistic environment for high-risk investments, encouraging traders to put more money into these meme coins.
Previously, the values of Dogecoin and Shiba Inu had been flat due to minimal demand, a trend seen across the larger cryptocurrency market, with Bitcoin (BTC) failing to maintain its price above $60,000. However, the latest macroeconomic changes signify a shift, positioning both Dogecoin and Shiba Inu toward new potential highs in tandem with Bitcoin.
It’s important to note the strong correlation these meme coins have with Bitcoin’s price movements. Data from IntoTheBlock indicates that Dogecoin has a correlation of 0.87 with Bitcoin, while Shiba Inu’s correlation stands at 0.85. This strong relationship suggests that as Bitcoin rises, so too do Dogecoin and Shiba Inu prices.
Another contributing factor to the price increase is the Bank of Japan’s recent decision to maintain its interest rates. This positively impacts risk assets, providing a further bullish outlook for Dogecoin and Shiba Inu. Additionally, the BOJ’s commentary on economic recovery hints that a rate hike may not be imminent.
Onchain data indicates that investors are returning to the Dogecoin and Shiba Inu markets, which is likely to push prices even higher. In the past 24 hours, large holders of Dogecoin have traded over 6 billion DOGE, while Shiba Inu saw a surge in large transactions with 2.51 trillion SHIB exchanged just before the Fed’s interest rate cut announcement.
Potential Price Targets for Meme Coins
Crypto analyst Kevin Capital (formerly known as OG Yomi) has expressed an optimistic outlook for Dogecoin, stating that it is “primed for significant gains soon.” He insists he has supporting data for this prediction.
In a prior post on X, he suggested that Dogecoin could reach as high as $3.80 if it performs exceptionally well in the current bullish environment. However, he noted that this is contingent on how the economic liquidity cycle unfolds.
Similarly, Shiba Inu News, a platform dedicated to SHIB updates, has forecasted a breakout for the token, predicting it could surge to $0.00004. Analyst Javon Marks has also speculated that SHIB might reach a price of $0.000081.