Emily Walker
Today, both Dogecoin and Shiba Inu are experiencing an increase in their prices, which is generating positive sentiment among investors. This positive trend follows a period of significant sell-offs earlier in the week that caused a notable drop in these popular meme coins.
Factors Behind the Price Increase of Dogecoin and Shiba Inu
According to CoinMarketCap, there is a current upward trend in the prices of Dogecoin and Shiba Inu, suggesting that a bullish rebound may be developing. This rise is primarily influenced by recent macroeconomic factors, especially the Federal Reserve’s decision to maintain interest rates in the range of 4.25% to 4.5%.
While a stable interest rate from the Federal Reserve is often seen as discouraging for cryptocurrency prices, Fed Chair Jerome Powell’s statements after the FOMC meeting have provided some encouragement to the market. Powell indicated that, although there’s no rush to lower rates, financial institutions are permitted to cater to crypto clients if they manage associated risks effectively. This has ignited a positive outlook amongst crypto investors, particularly as it signifies underlying support for crypto adoption by banks.
Additionally, developments from major financial institutions, such as Morgan Stanley’s collaboration with regulators to explore crypto services, coincide with Powell’s comments. This connection further fuels optimism for both Dogecoin and Shiba Inu, and the cryptocurrency market as a whole.
The price of Bitcoin also surged beyond $105,000 after Powell’s remarks, which has had a knock-on effect, boosting Dogecoin and Shiba Inu prices. Historically, these meme coins have been closely correlated with Bitcoin’s performance, often increasing in value alongside it. Analyst Kevin Capital mentioned that Dogecoin’s price appears to be poised for a significant move, contingent on Bitcoin’s actions in the near future.
Future Predictions for DOGE and SHIB
Crypto analyst Trader Tardigrade highlighted potential future movements for Dogecoin in an X post, suggesting it could replicate a robust 6-month rally similar to the one observed during the 2021 bull run. He identified a matching structure in Dogecoin’s price from past cycles.
In a separate X post, he indicated that the DOGE/BTC chart is indicative of a possible significant upward movement next month. His analysis includes a prediction that Dogecoin could rise to as high as $2 upon this anticipated surge.
On the other hand, crypto analyst Investing Haven expressed a positive outlook for Shiba Inu’s price. He pointed out that while many meme coins faced declines, SHIB has demonstrated resilience with less than a 20% drop in January. He noted that Shiba Inu has created a bullish W reversal pattern and is currently positioned at key Fibonacci retracement levels.