The valuations of Dogecoin and Shiba Inu are witnessing an uptick today, realizing significant advancements in the process. This rise in worth for the leading meme currencies follows a recent broader development, which has provided some relief for the crypto landscape.
Causes of The Upsurge in Dogecoin And Shiba Inu Valuations
As per information from CoinMarketCap, Dogecoin and Shiba Inu have recorded considerable advancements today, reflecting a price recovery for these well-known meme currencies. This price resurgence took place following the announcement of the unexpectedly mild US Producer Price Index (PPI) figures, providing comfort to the cryptocurrency industry.
The US PPI increased to 3.3% year-on-year (YoY), falling short of the previous predictions of 3.5%. This inflation data invigorated risk assets like Dogecoin and Shiba Inu, as they experienced a recovery following the data announcement. The PPI is one of the economic indicators the Federal Reserve considers when deciding on rate adjustments. A cooler-than-expected reading signals that inflation is decreasing, which is advantageous for risk assets such as these meme currencies.
Moreover, the rise in Dogecoin and Shiba Inu valuations was forecasted as Bitcoin recently broke the $97,000 threshold. These meme currencies demonstrate a strong positive price correlation with the premier cryptocurrency, often reflecting its price changes. Bitcoin was also reacting positively to the inflation statistics, steering the broader crypto market towards this price increase.
The inflation statistics evidently fostered a sense of hope among market participants who had remained wary due to uncertainty. This is especially pertinent for Dogecoin stakeholders, as data from IntoTheBlock shows a 41% increase in DOGE’s substantial transactions over the past 24 hours, with $23.35 billion exchanged in this period. This rise in Whale transactions further bolstered the price ascent, as these large investors typically exert a considerable influence on the market.
What Awaits These Meme Currencies?
Crypto analysts have shared their insights on the potential future of the valuations of Dogecoin and Shiba Inu. In a post on X, crypto analyst Kevin Capital noted that if the market sustains its bullish momentum, Dogecoin’s immediate target is to exceed the .415 Fibonacci level. The analyst stated that DOGE might return to the macro golden pocket at $0.48 after surpassing this Fib level.
Crypto analyst Master Kenobi also recently offered an optimistic projection for Dogecoin. He anticipated that the leading meme currency may reach a fresh peak around January 20, coinciding with Donald Trump’s inauguration day.
Regarding Shiba Inu, crypto analyst CW pointed out that the meme currency did not surpass the earlier low. Thus, he indicated that the target price remains at $0.00041. The analyst added that SHIB is likely to achieve this target price sooner than the trend depicted in his accompanying chart.
Featured image designed with Dall.E, chart sourced from Tradingview.com
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