Bitrabo Editorial
Recently, Dogecoin (DOGE) and Shiba Inu (SHIB) have seen significant increases in their prices, rising by 10% and 22% within the past day, respectively. These gains can be attributed to favorable macroeconomic trends and positive fundamental developments for both meme coins, indicating a promising future for them.
Reasons Behind the Price Increase of Dogecoin and Shiba Inu
The recent uptick in Dogecoin and Shiba Inu prices is largely influenced by global economic policies from various governments, which have boosted investor confidence. A key event was the announcement from the People’s Bank of China regarding interest rate cuts and a stimulus package aimed at revitalizing its economy.
Additionally, recent reports on US jobless claims and GDP have indicated a strong US economy. This follows the US Federal Reserve’s decision to implement 50 basis point (bps) rate cuts last week. As a result, these rate reductions in both the US and China are anticipated to increase the availability of liquidity for riskier assets like Dogecoin and Shiba Inu.
This trend appears to be reflected in the recent price hikes. It’s also notable that Bitcoin (BTC) has risen above $65,000 in the past 24 hours, which has positively affected these meme coins. Dogecoin and Shiba Inu have a strong price correlation with Bitcoin, indicating they will likely benefit from BTC’s performance.
Furthermore, the solid fundamentals supporting Dogecoin and Shiba Inu have contributed to their price growth. On September 26, QED Protocol announced a collaboration with Nexus to create a zero-knowledge virtual machine (zkVM) on the Dogecoin Network, enhancing DOGE’s utility by enabling smart contracts.
Shiba Inu is also expanding, with its marketing lead, Lucie, sharing plans for the SHI stablecoin launch within its ecosystem. This initiative is expected to generate interest and elevate the Shiba Inu ecosystem. Moreover, developer Shytoshi has hinted at the potential launch of a layer-3 privacy chain for Shiba Inu.
Anticipated Future Price Increases
Dogecoin and Shiba Inu are poised for additional price increases in the weeks ahead, as governments continue their monetary easing strategies. Crypto analyst Ali Martinez recently remarked on Dogecoin’s robustness, noting a breakout in its RSI and price that suggests strength after an extended downtrend. He mentioned that DOGE received a buy signal from the SuperTrend indicator.
Martinez also mentioned that Dogecoin could rise to $0.150, having surpassed the $0.111 resistance level. Meanwhile, Shiba Inu is on the brink of a significant surge, as it has consistently posted monthly gains in October. Recently, major investors or “whales” in Dogecoin and Shiba Inu have been accumulating these assets, indicating expectations of further price increases.