the Dogecoin and Shiba Inu prices It is rising today, posting significant gains in the process. This rise in the prices of the first meme coins came after the recent development on the macro side, which provided some relief to the cryptocurrency market.
Why are the prices of Dogecoin and Shiba Inu rising?
CoinMarketCap data It shows that Dogecoin and Shiba Inu prices posted significant gains today, marking a rebound in early meme coin prices. Dogecoin and Shiba Inu enjoyed this price recovery after cooler than expected US Producer Price Index (PPI) data provided relief to the price. Crypto market.
The US Producer Price Index rose to 3.3% year-on-year, lower than the previous forecast of 3.5%. this Inflation data It provided a boost to risk assets including Dogecoin and Shiba Inu, which rebounded after the data release. The Producer Price Index (PPI) is one of the economic indicators the Federal Reserve takes into account when cutting interest rates. A lower-than-expected number indicates that inflation is falling, which is bullish for risky assets like these meme coins.
Dogecoin and Shiba Inu prices were also set to rise, with Bitcoin recently surpassing $97,000. These meme coins share a strong positive price correlation with the main cryptocurrency, and are known to mirror its price action. Bitcoin was also reacting to positive inflation data and led the broader range Crypto market To this price rebound.
Clearly, the inflation data provided some optimism to market participants who were waiting on the sidelines due to market uncertainty. This is especially true for Dogecoin investors, with IntoTheBlock data showing a 41% rise Large DOGE transactions During the past 24 hours, $23.35 billion was traded during this period. This boom in Whale transactions Also contributing to the price recovery, these investors are known to greatly influence the market.
What’s next for these coins?
Cryptocurrency analysts have provided insight into what could happen next for Dogecoin and Shiba Inu prices. Posted by X, Cryptocurrency Analyst Kevin Capital He stated that if the market remains bullish, Dogecoin’s short-term target is to surpass the 0.415 Fibonacci level. The cryptocurrency analyst confirmed that DOGE could return to the overall golden pocket at $0.48 once this Fibonacci level is cleared.
Cryptographic analyzer Master Kenobi It also recently provided a bullish outlook for Dogecoin. He expected the first meme to reach a new high around January 20, the day of Donald Trump’s inauguration.
to Shiba InuCryptocurrency analyst CW stated that the meme coin did not break the previous low. As such, he noted that the target price remains $0.00041. The cryptocurrency analyst added that SHIB is expected to reach this target price sooner than the pattern he highlighted on the accompanying chart.
Featured image created with Dall.E, chart from Tradingview.com
