Today, the prices of Dogecoin and Shiba Inu are experiencing an uptick, igniting a positive sentiment among investors. This development follows a considerable wave of sell-offs that occurred earlier this week, resulting in a notable downturn for the premier meme cryptocurrencies.
Reasons Behind The Rise in Dogecoin And Shiba Inu Prices
According to data from CoinMarketCap, the prices of Dogecoin and Shiba Inu are climbing today, suggesting that a bullish turnaround may be imminent. The price increase can be attributed to macroeconomic developments, particularly the Federal Reserve maintaining interest rates in the 4.25% to 4.5% range.
Generally, the Federal Reserve’s decision to keep rates steady is viewed as bearish for the prices of Dogecoin and Shiba Inu. Nevertheless, Fed Chair Jerome Powell’s remarks following the FOMC meeting infused some bullish energy into the crypto sector, which accounts for the current rise of these leading meme coins.
While Powell indicated that they were not in a rush to reduce rates, he mentioned that financial institutions are permitted to cater to crypto clients, provided that the associated risks are effectively managed. This promptly ignited a bullish outlook among cryptocurrency investors, given that the US Central Bank has indirectly endorsed crypto integration within banks.
Additionally, it has come to light that Morgan Stanley CEO Ted Pick has disclosed the bank’s collaboration with regulators to explore cryptocurrency services. Therefore, Powell’s comments are timely and generate bullish momentum for both Dogecoin, Shiba Inu prices, and the wider crypto market.
Following Powell’s speech, the Bitcoin price also surged past $105,000. This rally in Bitcoin has further bolstered the prices of Dogecoin and Shiba Inu. The leading meme cryptocurrencies are known to share a strong positive correlation with Bitcoin, often rising in tandem. Based on this correlation, crypto analyst Kevin Capital remarked that the Dogecoin price is poised for a major move contingent on Bitcoin’s next significant leap, which could lead to explosive outcomes for the meme coin.
What Lies Ahead For DOGE And SHIB
In a post on X, crypto analyst Trader Tardigrade shared insights into possible future movements for the Dogecoin price. In his post, he speculated that Dogecoin might undergo a similar 6-month rally akin to that witnessed in the 2021 bull market. This assertion was based on his identification of a comparable DOGE pattern from the previous cycle.
In another post, he mentioned that the DOGE/BTC chart indicates a potential big candle could emerge next month for the Dogecoin price. His accompanying chart illustrated that the leading meme coin could surge to as high as $2 when this significant candle emerges.
Meanwhile, crypto analyst Investing Haven has provided an optimistic forecast for the Shiba Inu price. He mentioned that while other meme coins faced declines, SHIB demonstrated resilience with a correction of less than 20% in January. Furthermore, he noted that Shiba Inu has established a bullish W reversal and is positioned between significant Fibonacci levels.
Featured image from Unsplash, chart from Tradingview.com
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