Dogecoin (DOGE) and Shiba Inu (SHIB) have risen significantly over the past 24 hours. This development is due to bullish macro events. Onchain data also shows that these meme coins witness an influx from both large and private investors.
Why Dogecoin and Shiba Inu Prices Are Rising
Dogecoin and Shiba Inu have experienced a significant increase due to the US Federal Reserve’s 50 basis points (bps) interest rate cutThis has created bullish momentum for risk assets including these meme coins as investors now have more confidence in allocating more capital to these assets.
Until now, the price of Dogecoin and Shiba Inu has been stagnant due to a lack of significant demand for these coins. This has also been evident in the broader crypto market, led by Bitcoin (BTC), which has failed to keep above $60,000However, this macro event has triggered a bullish turnaround, with Dogecoin and Shiba Inu now chasing new highs alongside Bitcoin.
It is worth highlighting the strong positive price correlation between these meme coins and Bitcoin. Facts of the market intelligence platform IntoTheBlock shows that Dogecoin’s correlation with Bitcoin is 0.87, while Shiba Inu’s correlation with the flagship cryptocurrency is 0.85. Therefore, it is expected that Dogecoin and Shiba Inu prices will rise along with Bitcoin.
Another macro decision that contributed to the price increase of Dogecoin and Shiba Inu is the latest decision by the Bank of Japan (BOJ). The Bank of Japan kept interest rates unchanged, giving an optimistic outlook for these risky assets. The BOJ also said the economy was recovering as expected, suggesting there may be no need to raise interest rates anytime soon.
Meanwhile, onchain data shows that investors are returning to the Dogecoin and Shiba Inu ecosystems, which will lead to further price increases. Over 6 billion DOGE is traded in the last 24 hours by Dogecoin whales. On the other hand, Large Shiba Inu Transactions peaked just a day before the Fed’s decision to cut rates, with 2.51 trillion SHIB traded on that day.
How high can these meme coins rise?
Crypto Analyst Kevin Capital (formerly OG Yomi) believes that Dogecoin is “ready to rise soon.” He added that he truly believes this and that he has the evidence and data to support this predicted price increase.
In an earlier X post, he had predicted that the leading meme coin could soar to $3.80 in value if it achieved an astronomical performance in this bull runHe noted that it depends on how this economic liquidity cycle develops.
Meanwhile, a Shiba Inu dedicated X platform, Shiba Inu News, named that the meme coin would break out and undergo a parabolic rally to as high as $0.00004. Crypto analyst Javon Marks also predicted that SHIB could reach $0.000081.
Main image created with Dall.E, chart from Tradingview.com