Dogecoin (DOGE) and Shiba Inu (SHIB) have seen notable price increases in recent days. This price increase for the leading meme coins is believed to be driven by the flagship cryptocurrency, Bitcoins.
Why Dogecoin and Shiba Inu Have Been Seeing Price Surges Lately
Dogecoin and Shiba Inu have registered price increases lately due to their strong positive price correlation with Bitcoin as revealed by facts of the market intelligence platform IntoTheBlockThe flagship crypto recently surged as high as $67,000 following the downward market trend that saw it fall below $60,000Dogecoin and Shiba Inu fell at the time, as did Bitcoin.
However, with Bitcoin up over 15% over the past seven days, Dogecoin and Shiba Inu have also registered a similar rebound, up over 17% and 7% respectively. The price increase for Bitcoin (and Dogecoin and Shiba Inu, by extension) is due to several factors, including the renewed optimistic sentiment among crypto investors.
Investors are believed to be more optimistic given the selling pressure that the German government and Mt. Gox are leaving Bitcoin well done and dusted, with the former done selling its Bitcoin holdings. At the same time, the market appears to have already priced in Mt. Gox’s Bitcoin redemptions. As such, there is renewed optimism that the second phase of the bull rally is well underway.
On-chain statistics also paint a positive picture for Dogecoin and Shiba Inu, with crypto whales investing heavily in these meme coins. Facts from IntoTheBlock shows that Dogecoin Whales have added to their positions as the concentration measure has recently increased. Similarly, Shiba Inu Whales have accumulated more SHIB tokens, with data from IntoTheBlock showing a 13.79% increase in large transactions.
The whales also play a huge role in the significant price increases of these meme coins, as such an accumulation trend can cause these tokens to enter price discovery and increase their prices.
Further price increases for Dogecoin in the offing
From a technical analysis perspective, crypto analysts have predicted that more price increases are in the offing for Dogecoin. Crypto Analyst Kevin (formerly OG Yomi) revealed that Dogecoin is about to become a inverted head and shoulders on the support level on the daily timeframe. He added that the measured move target is 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 had always experienced pullbacks to Fibonacci 0.618 before the huge rallies in previous cyclesHe revealed that Dogecoin has reached the Fibonacci 0.618 again, meaning it is ready for that massive rally again.
Main image by Getty Images, chart by TradingView