In a thrilling turn of events, meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) have seen their prices skyrocket by 10% and an impressive 22% in just 24 hours. This surge can be attributed to a combination of favorable macroeconomic developments and the bullish fundamentals that underpin these iconic cryptocurrencies. Let’s explore the factors driving this remarkable rally.
Macro Factors Fueling The Surge
The recent price increases for Dogecoin and Shiba Inu are closely linked to significant macroeconomic changes. Central banks around the world, notably the People’s Bank of China, have begun implementing monetary easing policies, which boost investor confidence in risk assets. Earlier this week, China announced rate cuts and a stimulus package aimed at revitalizing its economy. Concurrently, positive data from the U.S. economy, including the latest jobless claims and GDP statistics, has reassured investors about economic stability.
Moreover, last week, the U.S. Federal Reserve made headlines by cutting interest rates by 50 basis points. These measures are expected to inject more liquidity into the market, encouraging investors to allocate funds into riskier assets like DOGE and SHIB. The impact is already visible, with Bitcoin (BTC) breaking above the $65,000 mark, significantly influencing the price movements of these meme coins. Historically, Dogecoin and Shiba Inu have demonstrated a strong positive correlation with Bitcoin, meaning their prices often rise in tandem.
Bullish Fundamentals Driving Demand
In addition to favorable macro conditions, the fundamental developments surrounding Dogecoin and Shiba Inu also contribute to their bullish outlook. Recently, the QED Protocol announced a partnership with Nexus to create a zero-knowledge virtual machine (zkVM) on the Dogecoin Network. This collaboration aims to enable smart contracts, which will enhance DOGE’s utility and appeal in the blockchain ecosystem.
On the other hand, Shiba Inu is poised for significant growth with its upcoming SHI stablecoin launch. Lucie, Shiba Inu’s marketing lead, has hinted at this development, which is expected to draw further attention to the project’s ecosystem. Furthermore, Shytoshi, a lead developer for Shiba Inu, has teased the potential launch of a layer-3 privacy chain, promising to enhance the network’s capabilities even more.
What Lies Ahead?
Looking forward, both Dogecoin and Shiba Inu are primed for additional price rallies as monetary easing continues. Crypto analyst Ali Martinez has pointed out that Dogecoin shows strong potential, having recently broken out of multiple downtrends and receiving a buy signal from the SuperTrend indicator. Martinez speculates that DOGE could climb to as high as $0.150, especially after surpassing the $0.111 resistance level.
Also Read: Dogecoin Soars Nearly 10% In 24 Hours – Smart Contracts And Whale Accumulation Drive Surge!
Shiba Inu, too, is on the verge of a historical breakout, with a track record of positive monthly returns in October. Whale investors are already positioning themselves, with increased accumulation observed in recent days, indicating strong confidence in the future of these meme coins.
With macroeconomic factors favoring liquidity and significant developments in their ecosystems, Dogecoin and Shiba Inu are not just riding a wave of speculation but are backed by solid fundamentals. As both meme coins continue to gain traction, investors and enthusiasts alike should keep a close watch on their price movements and upcoming developments, as the potential for further gains seems bright on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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