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Why is the price of Dogecoin and Shiba Inu rising today?
Both the Dogecoin and Shiba Inu Prices I saw a bullish reversal on the last day, making notable gains. With no clear development from either side on what might be driving the recoveries, a broader market perspective may have the answer to the question.
Dogecoin and Shiba Inu respond to Bitcoin
The current crypto market rally is being fueled by the pioneering cryptocurrency, Bitcoin, which is not unusual. In the last day, Bitcoin managed to break several resistance points and rose above $71,000. That Bitcoin recovery has triggered renewed positive sentiment among crypto investors, spreading to the likes of Dogecoin and Shiba Inu.
Since Bitcoin price recovery is the main reason Bitcoin prices Dogecoin and Shiba Inu have risen in the last day, the factors driving the price of Bitcoin are ultimately the reason why these meme coins are also rising. This recovery is, in part, driven by positive news coming from the United States.
The latest JOLTS report on US labor markets show that the market is starting to stabilize once again. Apparently, the employment-to-worker ratio has dropped to a three-year low of 1.2, and the last time it reached that low was in 2021 when the last crypto bull market occurred. This comes as layoff numbers fall and attrition rates among employees remain stable.
Investor sentiment also exploded during this period, with more money flowing into assets like Bitcoin and Ethereum. According to a CoinShares report, digital asset investment products saw inflows of $185 million in the last week alone, signaling bullish sentiment not only among retail investors but also institutional investors. All of this created a catalyst for the rise in the price of Bitcoin, and altcoins like Shiba Inu and Dogeocin emerged in response.
SHIB surpasses DOGE
Despite both Dogecoin and Shiba Inu seeing gains on the last day, the latter outperformed the former by a large margin. Dogecoin’s numbers arrived with gains of 3.7% in the 24-hour period, according to data from CoinGecko. This pushed its price above $0.16, bringing its market cap to $23.6 billion.
Meanwhile, Shiba Inu saw double-digit gains, recording a total gain of 10.2%, as per CoinGecko data show. As a result of this recovery, the meme coin has now successfully surpassed the $0.000026 resistance, taking its market cap above $15.4 billion.
However, both top meme coins have lagged investors’ new favorite, FLOKI, which is up over 24% over the same period. Other meme coins such as PEPE, BONK and Dogwifhat also rose, with gains of 2.7%, 7.9% and 9.7%, respectively.
Featured image created with Dall.E, chart from Tradingview.com