The Dogecoin and Shiba Inu prices are rising sharply today and are recording significant increases. This price increase for the major meme coins came following a recent development on the macro side that provided some relief for the crypto market.
Why Dogecoin and Shiba Inu prices are rising
CoinMarketCap data shows that Dogecoin and Shiba Inu prices have seen significant gains today, marking a price recovery for the major meme coins. Dogecoin and Shiba Inu have enjoyed this price rally following the release of weaker-than-expected US Producer Price Index (PPI) data, which provided relief Crypto market.
The US PPI rose to 3.3% year-on-year, below previous forecasts of 3.5%. The Inflation data provided a boost to risk assets such as 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 interest rates. A cooler-than-expected reading suggests inflation is declining, which is positive for risk assets like these meme coins.
Dogecoin and Shiba Inu prices are also likely to rise as Bitcoin price recently broke $97,000. These meme coins have a strong positive price correlation with the flagship cryptocurrency and are known to mirror its price movement. Bitcoin also reacted to the positive inflation data and led overall Crypto market to this price recovery.
The inflation data obviously provided some optimism among market participants who were taking a wait-and-see approach due to market uncertainty. This is especially true for Dogecoin investors as data from IntoTheBlock shows a 41% increase The major transactions of DOGE in the last 24 hours, with $23.35 billion traded during that period. This rise Whale transactions also contributed to the price recovery as these investors are known to have a significant influence on the market.
What’s next for these meme coins?
Crypto analysts have provided insights into the possible direction of Dogecoin and Shiba Inu prices. In an X post, crypto analyst Kevin Capital explained that Dogecoin’s short-term goal is to overcome the .415 Fibonacci level if the market remains bullish. The crypto analyst claimed that DOGE can return to the macro gold pocket at $0.48 once it clears this Fib level.
Crypto analyst Master Kenobi also recently gave an optimistic outlook for Dogecoin. He predicted that the main meme coin could reach a new high around January 20, Donald Trump’s inauguration day.
For Shiba InuCrypto analyst CW explained that the meme coin failed to break the previous low. Therefore, he noted that the price target is still $0.00041. The crypto analyst added that SHIB is expected to reach this price target sooner than the pattern he highlighted in his attached chart.
Featured image created with Dall.E, chart from Tradingview.com