Why Dogecoin and Shiba Inu Prices Are Gaining Momentum

After a significant decline at the end of February, Dogecoin and Shiba Inu prices have been recovering, sparked by macro factors that provide a bullish outlook for these meme coins in the long term.

Why Dogecoin and Shiba Inu Prices Are Gaining Momentum

According to CoinMarketCap data, both Dogecoin and Shiba Inu have recorded gains in the last seven days, a positive trend considering the significant crash they experienced a week earlier. This recovery trend is attributed to macro factors such as the weak US job data.

The US nonfarm payrolls increased by 151,000 in February, below expectations of 158,000. Meanwhile, the unemployment rate rose to 4.1%, higher than the expected 4.0%. Weak job data is bullish for Dogecoin and Shiba Inu prices. The US Federal Reserve could be forced to ease its quantitative tightening policies when the labor market looks weak.

The Fed’s easing of tightening policies leads to rate cuts, which sparks a bullish sentiment among investors. They are willing to allocate more capital to risk assets like Dogecoin and Shiba Inu. Another reason these meme coins have been on a recovery trend is that US President Donald Trump finally signed an executive order creating the Strategic Bitcoin Reserve and Digital Asset Stockpile.

This executive order has given legitimacy to Bitcoin and other crypto assets like Dogecoin and Shiba Inu. As a result, they could witness more adoption among retail and institutional investors. Their prices are simply reacting to these bullish fundamentals, which explains the recovery trend seen in the last seven days.

What’s Next for the Foremost Meme Coins?

Another development that is set to boost Dogecoin and Shiba Inu’s adoption is the OCC’s clarification that US banks can engage in crypto custody activities. Financial institutions can now custody crypto assets like these meme coins, which is very bullish, especially with Dogecoin ETFs on the horizon.

Crypto analyst Trader Tardigrade revealed that Dogecoin’s monthly candle has formed a doji, mirroring the same position in the previous cycle. He added that this doji might kick off a DOGE bull run, similar to the massive spike in the 2017 bull run. Interestingly, in an earlier analysis, the analyst stated that the foremost meme coin could move to the upside this weekend.

Crypto analyst Javon Marks indicated that the Shiba Inu price is eyeing a rally to $0.000081, representing a gain of over 480% from the meme coin’s current level. The analyst had earlier noted that SHIB continues to hold its breakout, which took place between 2022 and early 2023. With the price breakout holding, the analyst asserted that the target continues to be at the $0.000081 point.

Conclusion

In conclusion, the recovery trend in Dogecoin and Shiba Inu prices is attributed to macro factors such as weak US job data and the potential for the US Federal Reserve to ease its quantitative tightening policies. The executive order creating the Strategic Bitcoin Reserve and Digital Asset Stockpile has also given legitimacy to these meme coins, and their prices are reacting to these bullish fundamentals.

FAQs

Q: What are the bullish factors driving Dogecoin and Shiba Inu prices?

A: The weak US job data and the potential for the US Federal Reserve to ease its quantitative tightening policies are driving these meme coins’ prices.

Q: What is the significance of the executive order creating the Strategic Bitcoin Reserve and Digital Asset Stockpile?

A: This executive order has given legitimacy to Bitcoin and other crypto assets like Dogecoin and Shiba Inu, making them more attractive to retail and institutional investors.

Q: What is the potential for Dogecoin and Shiba Inu prices in the long term?

A: The recovery trend in these meme coins is driven by bullish fundamentals, indicating a positive outlook for the long term.