He Dogecoin and Shiba Inu Prices are rising today, posting significant gains in the process. This price increase for major meme coins came following a recent development on the macro side, which provided some relief to the cryptocurrency market.
Why Dogecoin and Shiba Inu Prices Are Rising
CoinMarketCap Data shows that Dogecoin and Shiba Inu prices have recorded considerable gains today, marking a price rally for the major meme coins. Dogecoin and Shiba Inu have enjoyed this price recovery following the release of colder-than-expected US Producer Price Index (PPI) data, which provided relief to the crypto market.
US PPI rose to 3.3% year-on-year (YoY), below previous projections of 3.5%. This inflation data provided a boost to risk assets including Dogecoin and Shiba Inu as they rallied following the data release. The PPI is one of the economic indicators that the Federal Reserve considers when cutting rates. A better-than-expected figure suggests that inflation is declining, which is bullish for risk assets like these meme coins.
The prices of Dogecoin and Shiba Inu were also set to rise, as the price of Bitcoin recently surpassed $97,000. These meme coins share a strong positive price correlation with the flagship cryptocurrency and are known to mirror its price movement. Bitcoin also reacted to positive inflation data and led the broader trend. crypto market to this rise in prices.
The inflation data evidently provided some optimism to market participants who had been waiting on the sidelines due to market uncertainty. This is particularly true for Dogecoin investors, as data from IntoTheBlock shows a 41% increase in The big DOGE transactions in the last 24 hours, with $23.35 billion traded during this period. This increase in Whale transactions It also contributed to the price rally as these investors are known to significantly influence the market.
What’s next for these Meme coins?
Crypto analysts have provided insight into what could happen next for Dogecoin and Shiba Inu prices. In a post X, crypto analyst Kevin Capital stated that if the market remains bullish, then Dogecoin’s short-term goal is to break through the .415 Fibonacci level. The crypto analyst claimed that DOGE can return to the macro gold market at $0.48 once it breaks this Fib level.
Cryptographic analyst Master Kenobi He also recently provided a bullish outlook for Dogecoin. He predicted that the top meme coin could reach a new high around January 20, the day of Donald Trump’s inauguration.
For shiba inuCrypto analyst CW claimed that the meme coin did not break above the previous low. As such, he commented that the price target remains at $0.00041. The crypto analyst added that SHIB is expected to reach this price target sooner than the pattern he highlighted in the accompanying chart.
Featured image created with Dall.E, chart from Tradingview.com
