Why Did The Dogecoin And Shiba Inu Price Rise So Much?

Dogecoin (DOGE) and Shiba Inu (SHIB) have rallied significantly in the last 24 hours. This development is thanks to bullish macro events. Onchain data also shows that these meme coins are witnessing inflows from both large and retail investors. 

Why Dogecoin And Shiba Inu Prices Are Up

Dogecoin and Shiba Inu have experienced a significant surge due to the US Federal Reserve’s 50 basis point (bps) interest rate cut. This has provided bullish momentum for risk assets, including these meme coins, as investors are now more confident in allocating more capital to them. 

Before 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 crypto market, led by Bitcoin (BTC), which failed to hold above $60,000. However, this macro event has provided a bullish reversal, with Dogecoin and Shiba Inu now targeting 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 IntoTheBlock shows that Dogecoin’s correlation with Bitcoin is 0.87, while Shiba Inu’s correlation with the flagship crypto is 0.85. Therefore, it is only expected that the Dogecoin and Shiba Inu prices will rise along with Bitcoin. 

Another macro decision that has contributed to the Dogecoin and Shiba Inu price surge is the latest decision from 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 was recovering as expected, suggesting there might not be a need to hike rates anytime soon. 

Meanwhile, onchain data shows that investors are again returning to the Dogecoin and Shiba Inu ecosystems, which will lead to further price surges. Over 6 billion DOGE has been traded in the last 24 hours by Dogecoin whales. On the other hand, Shiba Inu’s large transactions witnessed a spike 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 OG Yomi) believes Dogecoin is “ready to moon soon.” He added that he genuinely believes this and has the evidence and data to support this projected price surge. 

In an earlier X post, he had predicted that the foremost meme coin could rise to as high as $3.80 if it records an astronomical performance in this bull run. He remarked that it depends on how this economic liquidity cycle pans 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 as high as $0.00004. Crypto analyst Javon Marks also predicted that SHIB could reach $0.000081. 

Featured image created with Dall.E, chart from Tradingview.com