Here’s Why The Dogecoin And Shiba Inu Prices Have Been On A Recovery Trend
Source: Bitcoinist
Dogecoin and Shiba Inu prices have been recovering since their significant declines at the end of February. This recovery trend has been sparked by macro factors, which provide a bullish outlook for the foremost meme coins in the long term.
Why Dogecoin And Shiba Inu Prices Are Gaining Momentum
CoinMarketCap data shows that the Dogecoin and Shiba Inu prices have recorded gains in the last seven days, which is a positive considering that the foremost meme coins had significantly crashed a week earlier. This recovery trend is thanks 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 the foremost 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 further 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. As such, their prices are simply reacting to these bullish fundamentals, which explains the recovery trend seen in the last seven days.
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.
What Next For The Foremost Meme Coins
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.
Related Reading: Bitcoin Goes Official: Texas Becomes 1st US State With BTC Reserve
Meanwhile, in an X post, 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.
Featured image from Pexels, chart from TradingView
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