Dogecoin (DOGE) and Shiba Inu (SHIB) have seen notable price increases in recent days. This surge in prices of major meme coins is believed to be driven by flagship cryptocurrency, Bitcoin.
Why Dogecoin and Shiba Inu Have Recorded Recent Price Surges
Dogecoin and Shiba Inu have seen recent price increases due to their strong positive correlation with Bitcoin, as revealed by data from the market intelligence platform In the block. The flagship cryptocurrency recently hit $67,000 following the market’s downtrend, which saw it fall below $60,000Dogecoin and Shiba Inu then declined, following the same path as Bitcoin.
However, while Bitcoin has surged by over 15% in the past seven days, Dogecoin and Shiba Inu have also seen a similar rebound, rising by over 17% and 7%, respectively. The surge in Bitcoin prices (and Dogecoin and Shiba Inu, by extension) is due to several factors, including the recovery bullish sentiment among cryptocurrency investors.
Investors are believed to be more optimistic, given the selling pressure exerted by the German Government and Mt. Gox has bet on Bitcoin, with the former having finished selling its Bitcoin holdings. At the same time, the market appears to have already priced in Mt. Gox’s Bitcoin repayments. As such, there is renewed optimism that the second phase of the bull rally is well underway.
On-chain metrics also paint a bullish picture for Dogecoin and Shiba Inu, with crypto whales heavily invested in these meme coins. Data from IntoTheBlock shows that Dogecoin Whales have increased their positions as concentration has increased recently. Similarly, Shiba Inu Whales have accumulated more SHIB tokens, with data from IntoTheBlock showing a 13.79% increase in large transactions.
Whales also play a major role in the significant price surges of these meme coins, as such an accumulation trend could send these tokens into price discovery and lead to price surges for them.
More Price Hikes on the Horizon for Dogecoin
From a technical analysis perspective, crypto analysts have predicted that further price gains are on the horizon for Dogecoin. Crypto Analyst Kevin (formerly OG Yomi) revealed that Dogecoin is about to form a inverted head and shoulders at the support level on the daily time frame. He added that the measured move target lies between $0.15 and $0.17 if the meme coin completes the right shoulder.
Crypto Analyst Trader Tardigrade also mentioned that a “huge rally” is imminent for Dogecoin. He noted that the leading meme coin has historically seen pullbacks to the .618 Fibonacci level before the huge rallies in previous cyclesHe revealed that Dogecoin has once again reached the 0.618 Fibonacci level, meaning it is ready for that massive rally again.
Featured image from Getty Images, chart from TradingView
