Overview of the Recent Surge in Dogecoin and Shiba Inu Prices
In the past 24 hours, Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced a substantial rally. This upward trend can be attributed to favorable macroeconomic events that have instilled confidence in both large and retail investors. Notably, on-chain data reveals a significant influx of capital into these meme coins, further fueling their price surge.
Why Dogecoin and Shiba Inu Prices Are Up
The recent surge in Dogecoin and Shiba Inu prices can be linked to the US Federal Reserve’s decision to implement a 50 basis point (bps) interest rate cut. This move has created a bullish environment for risk assets, encouraging investors to allocate more capital to these meme coins.
Prior to this, the prices of Dogecoin and Shiba Inu had been relatively stagnant due to a lack of significant demand. This trend was also observed in the broader crypto market, with Bitcoin (BTC) struggling to maintain its position above $60,000. However, the recent macroeconomic development has triggered a bullish reversal, propelling Dogecoin and Shiba Inu towards new highs alongside Bitcoin.
It is important to note the strong positive price correlation between these meme coins and Bitcoin. According to data from market intelligence platform IntoTheBlock, Dogecoin’s correlation with Bitcoin stands at 0.87, while Shiba Inu’s correlation is 0.85. Consequently, the rise in Bitcoin’s price is expected to positively impact Dogecoin and Shiba Inu as well.
Another significant factor contributing to the price surge of Dogecoin and Shiba Inu is the Bank of Japan’s (BOJ) recent decision to keep interest rates unchanged. This decision has provided a bullish outlook for these risk assets. Furthermore, the BOJ indicated that the economy is recovering as expected, suggesting that there may not be a need for rate hikes in the near future.
On-chain data supports the notion that investors are returning to the Dogecoin and Shiba Inu ecosystems, which is likely to lead to further price increases. In the last 24 hours, over 6 billion DOGE have been traded by Dogecoin whales. Similarly, Shiba Inu witnessed a spike in large transactions just a day before the Fed’s interest rate cut decision, with 2.51 trillion SHIB traded on that day.
How High Can These Meme Coins Rise?
Crypto analyst Kevin Capital, formerly known as OG Yomi, believes that Dogecoin is “ready to moon soon.” He has expressed confidence in this projection, citing evidence and data to support the anticipated price surge.
In a previous post on social media platform X, Kevin Capital predicted that Dogecoin could rise to as high as $3.80 if it performs exceptionally well during this bull run. He emphasized that this outcome would depend on the dynamics of the current economic liquidity cycle.
Meanwhile, a dedicated Shiba Inu platform, Shiba Inu News, has mentioned that the meme coin could break out and experience a parabolic rally, potentially reaching as high as $0.00004. Crypto analyst Javon Marks has also forecasted that SHIB could attain a price of $0.000081.
As the market continues to respond to these macroeconomic developments, it remains to be seen how high Dogecoin and Shiba Inu can rise. Investors and enthusiasts are closely monitoring these meme coins, eagerly anticipating their next moves.
