Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced price increases of 10% and 22% respectively over the past 24 hours. These price advancements are attributed to macroeconomic developments and the underlying fundamentals of these meme coins, which present a positive forecast for their future.
Reasons for the Increase in Dogecoin and Shiba Inu Prices
The rise in prices of Dogecoin and Shiba Inu can be linked to recent macroeconomic developments, particularly the monetary policies implemented by various governments worldwide. This has instilled greater confidence among investors to allocate more funds to riskier assets such as Dogecoin and Shiba Inu. Earlier this week, the People’s Bank of China revealed a series of rate cuts along with a stimulus package aimed at reviving the country’s economy.
In addition, recent US unemployment claims and GDP statistics indicated a robust US economy. This follows last week’s 50 basis point (bps) rate reductions by the US Federal Reserve. Furthermore, these cuts from both the US and China are anticipated to increase liquidity flowing into risk assets, which include Dogecoin and Shiba Inu.
The upward momentum is already evident as their prices have recently surged. Notably, Bitcoin (BTC) surpassed $65,000 in the last 24 hours, contributing to the upward trend of these meme coins. Dogecoin and Shiba Inu maintain a strong positive price correlation with Bitcoin, likely causing them to rise concurrently as BTC does.
The promising fundamentals of Dogecoin and Shiba Inu are additional reasons behind the recent rallies. On September 26, QED Protocol disclosed its partnership with Nexus for the development of a zero-knowledge virtual machine (zkVM) on the Dogecoin Network. This technological advancement will enable smart contracts on the network, thereby enhancing DOGE’s utility.
Meanwhile, the marketing lead for Shiba Inu, Lucie, shared insights about plans for launching the SHI stablecoin within the meme coin’s ecosystem. This initiative positions Shiba Inu favorably as it is expected to attract more interest to its ecosystem. Additionally, Shiba Inu’s developer lead, Shytoshi, has hinted at the potential launch of a layer-3 privacy chain within the ecosystem as well.
Upcoming Price Increases Predicted
Dogecoin and Shiba Inu are projected to continue their price rallies in the upcoming weeks as governments persist in implementing monetary easing policies. Crypto analyst Ali Martinez recently remarked that Dogecoin appears to be in a strong position. He noted that DOGE has seen an RSI and price breakout from several downtrends, and has received a buy signal from the SuperTrend indicator.
In a separate post on X, Martinez suggested that Dogecoin might escalate to as high as $0.150, having moved past the $0.111 resistance level. Shiba Inu is also nearing the brink of a significant run, as historically, the meme coin has consistently exhibited positive returns each October. Dogecoin and Shiba Inu whales are already positioning themselves for these potential price rallies, having actively accumulated over the past few days.
Featured image created with Dall.E, chart from Tradingview.com
