In recent weeks, Dogecoin and Shiba Inu prices have shown signs of recovery following substantial declines at the end of February. This resurgence can be attributed to various macroeconomic factors that point towards a bullish outlook for these prominent meme coins in the long term.
Why Dogecoin And Shiba Inu Prices Are Gaining Momentum
Data from CoinMarketCap indicates that Dogecoin and Shiba Inu have experienced notable gains over the past week, a welcome change given their previously steep decline. This recovery is largely influenced by macro factors, including disappointing US job data.
The US nonfarm payrolls saw an increase of 151,000 in February, falling short of the anticipated 158,000, while the unemployment rate escalated to 4.1%, surpassing expectations of 4.0%. Weak job numbers often lead to a bullish sentiment for cryptocurrencies like Dogecoin and Shiba Inu. Analysts suggest that the US Federal Reserve may need to reconsider its tightening policies when confronted with a fragile labor market.
The potential easing of monetary policies by the Fed could result in rate cuts, fostering a risk-on attitude among investors who are inclined to invest in assets like Dogecoin and Shiba Inu. Additionally, the recent executive order signed by US President Donald Trump establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile has further legitimized Bitcoin and other cryptocurrencies, including these leading meme coins, potentially enhancing their appeal among retail and institutional investors.
Furthermore, a pivotal development is the Office of the Comptroller of the Currency’s (OCC) clarification that US banks may engage in crypto custody activities. This decision paves the way for meme coins such as Dogecoin and Shiba Inu to be more widely adopted, especially with Dogecoin ETFs on the horizon.
What Next For The Foremost Meme Coins
Industry analyst Trader Tardigrade has highlighted that Dogecoin’s monthly candle has formed a doji, a pattern reminiscent of its position prior to significant price movements in earlier bull runs. This form could signal the onset of a Dogecoin bull run, potentially mirroring the dramatic price increases observed during the 2017 bull cycle. Interestingly, recent analyses suggest that Dogecoin could see upward movement in the upcoming weekend.
Additionally, crypto analyst Javon Marks recently noted on X that Shiba Inu is poised for a rally toward $0.000081, translating to a remarkable gain exceeding 480% from its current price. Marks underlined that SHIB continues to maintain the momentum established during its price breakout between 2022 and early 2023, reinforcing that the price target remains at the aforementioned level.
Featured image from Pexels, chart from TradingView
