Dogecoin (DOGE) and Shiba Inu (SHIB) have seen a significant increase in the last 24 hours. This development is due to bullish macroeconomic events. Onchain data also shows that these meme coins are witness to the influx from both major investors and individuals.
Why Dogecoin and Shiba Inu Prices Are Rising
Dogecoin and Shiba Inu have seen a significant increase due to the 50 basis point (bps) hike by the US Federal Reserve lower interest ratesThis has given bullish momentum to risk assets, including these meme coins, as investors are now more confident in allocating more capital to them.
Until now, the price of Dogecoin and Shiba Inu had stagnated due to a lack of significant demand for these coins. This was also evident in the broader cryptocurrency market, led by Bitcoin (BTC), which failed to maintain above $60,000However, this macroeconomic event has caused a bullish reversal, with Dogecoin and Shiba Inu now aiming for new highs alongside Bitcoin.
It is worth highlighting the strong positive price correlation between these meme coins and Bitcoin. Data from the market intelligence platform In the block shows that the correlation between Dogecoin and Bitcoin is 0.87, while the correlation between Shiba Inu and the flagship cryptocurrency is 0.85. Therefore, it is expected that the prices of Dogecoin and Shiba Inu will increase in parallel with those of Bitcoin.
Another macro decision that contributed to the surge in Dogecoin and Shiba Inu prices is the latest decision by the Bank of Japan (BOJ)The Japanese central bank kept rates unchanged, providing a bullish outlook for these risk assets. The BOJ also indicated that the economy is recovering as expected, suggesting that there may be no need to raise rates in the near future.
Meanwhile, on-chain data shows that investors are once again returning to the Dogecoin and Shiba Inu ecosystems, which will lead to further price increases. Over 6 billion DOGE have been exchange over the past 24 hours by Dogecoin whales. On the other hand, Shiba Inu’s Big Transactions saw a spike just a day before the Fed’s interest rate cut decision, with 2.51 trillion SHIB traded that day.
How high can these meme coins go?
Crypto Analyst Kevin Capital (formerly OG Yomi) believes that Dogecoin is “ready to explode soon.” He added that he truly believes this and has the evidence and data to support this predicted price increase.
In a previous article on X, he predicted that the leading meme coin could hit $3.80 if it performs astronomically in this bullfightHe noted that it depends on how this economic liquidity cycle plays out.
Meanwhile, a Shiba Inu dedicated X platform, Shiba Inu News, mentioned that the meme coin would break out and enjoy a parabolic rally to $0.00004. Crypto Analyst Javon Marks he also predicted that SHIB could reach $0.000081.
Featured image created with Dall.E, chart by Tradingview.com
