THE Price of Dogecoin and Shiba Inu are up sharply today, recording significant gains. This surge in prices of major meme coins follows a recent development on the macro side, which has brought some relief to the crypto market.
Why Dogecoin and Shiba Inu prices are increasing
CoinMarketCap data shows that Dogecoin and Shiba Inu prices saw considerable gains today, marking a price rebound for the major coins. Dogecoin and Shiba Inu benefited from this price rally following the release of colder-than-expected US Producer Price Index (PPI) data, which provided some relief to the market. crypto market.
The US PPI increased to 3.3% year-on-year (y-o-y), lower than previous projections of 3.5%. This inflation data boosted risk assets including Dogecoin and Shiba Inu as they rebounded after the data release. The PPI is one of the economic indicators considered by the Federal Reserve when cutting rates. A cooler-than-expected number suggests inflation is falling, which is bullish for risk assets like these meme coins.
The prices of Dogecoin and Shiba Inu were also bound to rise since the price of Bitcoin recently surpassed $97,000. These meme coins share a strong positive price correlation with the flagship crypto and are known to mirror its price action. Bitcoin was also reacting to positive inflation data and leading the broader movement. crypto market to this price rebound.
The inflation data obviously brought some optimism to market participants who were waiting on the sidelines due to market uncertainty. This is especially true for Dogecoin investors, as IntoTheBlock data shows a 41% surge DOGE’s big transactions over the past 24 hours, with $23.35 billion traded during that time. This push Whale Transactions also contributed to the price rebound, as these investors are known to significantly influence the market.
What’s next for these Meme Coins?
Crypto analysts have given a glimpse of what could happen next for Dogecoin and Shiba Inu prices. In a post Kevin Capital said that if the market remains bullish, Dogecoin’s short-term goal is to reach the 0.415 Fibonacci level. The crypto analyst claimed that DOGE could return to the golden macro pocket at $0.48 once it crosses this Fib level.
Crypto analyst Master Kenobi also recently provided a bullish outlook for Dogecoin. He predicted that the top coin could reach a new high around January 20, the day of Donald Trump’s inauguration.
For Shiba Inucrypto analyst CW said the meme coin did not break above the previous low. As such, he noted that the target price is still $0.00041. The crypto analyst added that SHIB is expected to reach this target price sooner than the trend he highlighted on his attached chart.
Featured image created with Dall.E, chart from Tradingview.com