As a seasoned crypto investor with a knack for spotting trends and understanding market dynamics, I find myself intrigued by the recent surge of Dogecoin (DOGE) and Shiba Inu (SHIB). The bullish macro events, particularly the US Federal Reserve’s interest rate cut and the Bank of Japan’s decision to keep rates unchanged, have undeniably provided a much-needed boost to these meme coins.
Over the past day, Dogecoin (DOGE) and Shiba Inu (SHIB) have seen a substantial surge. This upward trend can be attributed to optimistic market conditions. Additionally, on-chain analysis indicates that these meme cryptocurrencies are receiving investments from both institutional and individual investors.
Why Dogecoin And Shiba Inu Prices Are Up
The recent decrease of 50 basis points in the U.S. Federal Reserve’s interest rate has boosted Dogecoin and Shiba Inu, along with other “meme” cryptocurrencies. This rate cut has instilled investor confidence, leading them to allocate more funds into riskier assets like these digital coins, which has resulted in their surge.
Until recently, the prices of Dogecoin and Shiba Inu had been relatively unchanged because there wasn’t enough strong interest in these cryptocurrencies. This trend was noticeable across the entire crypto market, particularly with Bitcoin (BTC) struggling to stay above $60,000. However, this larger market situation has sparked a bullish turnaround, causing Dogecoin and Shiba Inu to aim for new peaks along with Bitcoin.
It’s important to note that there’s a significant positive relationship between these meme coins (such as Dogecoin and Shiba Inu) and Bitcoin in terms of price movements. According to IntoTheBlock, the correlation between Dogecoin and Bitcoin is 0.87, while it’s 0.85 for Shiba Inu. This suggests that when Bitcoin rises, so does the value of these meme coins. Consequently, a surge in Bitcoin’s price could potentially drive up the prices of both Dogecoin and Shiba Inu as well.
One significant factor fueling the recent price increase of Dogecoin and Shiba Inu is the recent stance taken by the Bank of Japan (BOJ). By choosing to maintain current interest rates, the BOJ has created a positive environment for these riskier assets. Furthermore, the BOJ’s statement that the economy is recovering as anticipated implies that an increase in interest rates may not be necessary imminently.
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 expert Kevin Capital, previously known as OG Yomi, expresses his conviction that Dogecoin is on the verge of a significant price increase in the near future. He emphasizes that this belief is not only an opinion but is backed by solid evidence and data supporting the anticipated price spike.
Previously, he foresaw that the leading meme coin might surge up to a maximum of $3.80, given exceptional growth during this bull market phase. However, he emphasized that its actual rise would hinge upon the evolution of the current economic liquidity cycle.
Currently, it’s being reported by Shiba Inu News on their dedicated X platform that the meme coin, Shiba Inu (SHIB), is set to surge and potentially reach a peak of $0.00004. Furthermore, crypto analyst Javon Marks believes SHIB could even climb higher, reaching an estimated value of $0.000081.
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2024-09-20 17:41