In the last 24 hours, Dogecoin (DOGE) and Shiba Inu (SHIB) prices have skyrocketed by 10% and 22%, respectively. These significant price surges can be attributed to favorable macroeconomic developments and the strong fundamentals of these meme coins, offering a bullish outlook for their future performance.
Why Dogecoin and Shiba Inu Prices Are Up
The recent price spikes in Dogecoin and Shiba Inu are primarily driven by macroeconomic developments, such as the monetary policies implemented by global governments. These policies have bolstered investor confidence, prompting increased capital allocation to risk assets like Dogecoin and Shiba Inu.
Earlier this week, the People’s Bank of China announced rate cuts and unveiled a stimulus package aimed at revitalizing the country’s economy. Simultaneously, the latest US jobless claims and GDP data indicated a robust US economy. This follows last week’s 50 basis point (bps) rate cuts by the US Federal Reserve. The rate cuts by both the US and China are anticipated to inject more liquidity into risk assets, including Dogecoin and Shiba Inu.
Moreover, Bitcoin (BTC) surpassed $65,000 within the last 24 hours, further fueling the rally of these meme coins. Dogecoin and Shiba Inu often exhibit a strong positive price correlation with Bitcoin, resulting in their price surges when BTC rallies.
In addition to macroeconomic factors, the bullish fundamentals of Dogecoin and Shiba Inu have significantly contributed to their recent rallies. On September 26, QED Protocol announced a partnership with Nexus to develop a zero-knowledge virtual machine (zkVM) on the Dogecoin Network. This advancement will enable smart contracts on the network, enhancing DOGE’s utility.
Meanwhile, Shiba Inu’s marketing lead, Lucie, disclosed plans to launch the SHI stablecoin within the meme coin’s ecosystem. This initiative is expected to attract more attention to Shiba Inu’s ecosystem, providing a bullish outlook. Additionally, Shiba Inu’s developer, Shytoshi, has continued to hint at the potential launch of a layer-3 privacy chain within the meme coin’s ecosystem.
More Price Rallies To Come
As governments persist in introducing monetary easing policies, Dogecoin and Shiba Inu are anticipated to experience further price rallies in the coming weeks. Crypto analyst Ali Martinez recently highlighted Dogecoin’s strong performance, noting that DOGE has witnessed an RSI and price breakout from multiple downtrends. He also mentioned that the SuperTrend indicator has issued a buy signal for Dogecoin.
In another post, Martinez suggested that Dogecoin could rally to as high as $0.150, having surpassed the $0.111 resistance level. Shiba Inu is also on the brink of a historic run, as the meme coin has consistently recorded positive monthly returns in October. Large investors, known as whales, are already positioning themselves for these anticipated price rallies, accumulating Dogecoin and Shiba Inu in recent days.
In conclusion, the recent price surges of Dogecoin and Shiba Inu are driven by a combination of favorable macroeconomic developments and robust fundamentals. As global governments continue to implement monetary easing policies, these meme coins are poised for further rallies in the near future.
