In the ever-fluctuating universe of cryptocurrencies, Dogecoin and Shiba Inu have shown notable resilience, recovering from their significant dips at the end of February. This bounce-back has been primarily driven by macroeconomic factors, painting a promising picture for these leading meme coins in the larger financial landscape.
What’s Behind the Rising Trajectory of Dogecoin and Shiba Inu?
According to data from CoinMarketCap, both Dogecoin and Shiba Inu have been on an upward swing in the past week. Considering the substantial fall they previously experienced, this rebound signals an optimistic shift, chiefly attributed to macroeconomic influencers such as US job data. The US nonfarm payrolls in February reflected a rise of only 151,000, falling short of the projected 158,000. Simultaneously, the unemployment rate climbed to 4.1%, overshooting the anticipated 4.0%.
Such weak employment statistics bode well for Dogecoin and Shiba Inu. It might compel the US Federal Reserve to reconsider its strict quantitative control measures if the labor market continues to appear fragile. The easing of the Federal Reserve’s monetary policy could catalyze rate cuts, instigating a more bullish investor sentiment. This optimistic outlook could lead investors to allot more capital into high-risk assets such as Dogecoin and Shiba Inu.
Another propellant for the meme coins’ recovery is the executive order by former US President Donald Trump, endorsing the creation of the Strategic Bitcoin Reserve and Digital Asset Stockpile. This decisive move has further validated Bitcoin and fellow crypto assets like Dogecoin and Shiba Inu. Consequently, we could see escalating acceptance among both retail and institutional investors. The recent upsurge in their prices is a direct response to these encouraging market conditions that have prevailed over the last week.
The total crypto market cap presently stands at an impressive $2.7 trillion, as depicted by TradingView. Yet another impetus set to amplify the adoption of Dogecoin and Shiba Inu is the clarification issued by the Office of the Comptroller of the Currency (OCC) that US banks are authorized to partake in crypto custody activities. With financial institutions now able to custody assets like Dogecoin and Shiba Inu, the future looks particularly promising, especially with Dogecoin ETFs on the anvil.
The Future Outlook for Leading Meme Coins
Crypto analyst Trader Tardigrade has postulated that Dogecoin’s monthly candle has taken the shape of a doji, a pattern reminiscent of its position in the earlier cycle. This formation could potentially trigger a DOGE bull run, akin to the notable surge witnessed during the 2017 bull run. Interestingly, the analyst previously suggested that Dogecoin might experience an upward push this weekend.
Parallelly, in an X post, another crypto analyst, Javon Marks, suggested that Shiba Inu’s price is likely to rally up to $0.000081, reflecting an impressive surge of over 480% from its current position. Marks had previously observed that SHIB has managed to sustain the breakout spanning from 2022 to early 2023. As the price breakout holds strong, Marks believes the target continues to inch closer to the $0.000081 mark.
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FAQs
Why are Dogecoin and Shiba Inu prices recovering?
The recovery of both Dogecoin and Shiba Inu prices can be attributed to various macroeconomic factors, such as weak US job data and the easing of Federal Reserve’s monetary policies, among others.
What was the impact of the executive order by former US President Donald Trump on Dogecoin and Shiba Inu?
The executive order lent legitimacy to Bitcoin and other cryptocurrencies like Dogecoin and Shiba Inu, which could potentially boost their acceptance among retail and institutional investors.
What’s the future outlook for Dogecoin and Shiba Inu?
Crypto analysts believe that both Dogecoin and Shiba Inu are likely to experience an upward price trajectory. For Dogecoin, a potential bull run similar to 2017 may be on the cards, while Shiba Inu’s price could rally up to $0.000081.
What role does the US Banks play in Dogecoin and Shiba Inu’s adoption?
The clarification issued by the OCC, authorizing US banks to engage in crypto custody activities, could significantly boost the adoption of Dogecoin and Shiba Inu, especially with Dogecoin ETFs on the horizon.
