The Dogecoin and Shiba Inu prices are surging today, recording significant gains in the process. This price surge for the foremost meme coins came following a recent development on the macro side, which provided some relief for the crypto market.
Why The Dogecoin And Shiba Inu Prices Are Surging
CoinMarketCap data shows that the Dogecoin and Shiba Inu prices have recorded considerable gains today, marking a price rebound for the foremost meme coins. Dogecoin and Shiba Inu have enjoyed this price recovery following the release of the cooler-than-expected US Producer Price Index (PPI) data, which provided relief for the crypto market.
The US PPI rose to 3.3% year-on-year (YoY), lower than the earlier projections of 3.5%. This inflation data provided a boost for risk assets including Dogecoin and Shiba Inu, seeing as they rebounded following the data release. The PPI is one of the economic indicators that the Federal Reserve considers when cutting rates. A cooler-than-expected figure suggests inflation is declining, which is bullish for risk assets like these meme coins.
The Dogecoin and Shiba Inu prices were also bound to surge as the Bitcoin price recently broke above $97,000. These meme coins share a strong positive price correlation with the flagship crypto and are know to mirror its price movement. Bitcoin was also reacting to the positive inflation data and led the broader crypto market to this price rebound.
The inflation data evidently provided some optimism for market participants who had been waiting on the sidelines due to market uncertainty. This is particularly true for Dogecoin investors, as IntoTheBlock data shows a 41% spike in DOGE’s large transactions in the last 24 hours, with $23.35 billion traded during this period. This surge in Whale transactions also contributed to the price rebound, as these investors are known to significantly influence the market.
What Next For These Meme Coins?
Crypto analysts have provided insights into what could come next for the Dogecoin and Shiba Inu prices. In an X post, crypto analyst Kevin Capital stated that if the market remains bullish, then Dogecoin’s short-term goal is to clear the .415 Fibonacci level. The crypto analyst asserted that DOGE can head back to the macro golden pocket at $0.48 once it clears this Fib level.
Crypto analyst Master Kenobi also recently provided a bullish outlook for Dogecoin. He predicted that the foremost meme coin could reach a new high around January 20, the day of Donald Trump’s inauguration.
For Shiba Inu, crypto analyst CW stated that the meme coin did not break the previous low. As such, he remarked that the target price is still $0.00041. The crypto analyst added that SHIB is expected to reach this target price sooner than the pattern that he highlighted on his accompanying chart.
Featured image created with Dall.E, chart from Tradingview.com
