Dogecoin (DOGE) and Shiba Inu (SHIB) have witnessed notable price surges over these past few days. This price rally for the leading meme coins is believed to be driven by the flagship cryptocurrency, Bitcoin.
Dogecoin and Shiba Inu have recorded recent price surges due to their strong positive price correlation with Bitcoin, as revealed by data from the market intelligence platform IntoTheBlock. The flagship crypto recently rose to as high as $67,000 following the market downtrend, which saw it drop below $60,000. Dogecoin and Shiba Inu declined back then, following the same path as Bitcoin.
However, with Bitcoin up over 15% in the last seven days, Dogecoin and Shiba have also recorded a similar rebound, surging over 17% and 7%, respectively. The price surge for Bitcoin (and Dogecoin and Shiba Inu, by extension) is due to several factors, including the renewed bullish sentiment among crypto investors.
Investors are believed to be more bullish, considering that the selling pressure the German government and Mt. Gox put on Bitcoin is well done and dusted, with the former done selling its Bitcoin holdings. At the same time, the market looks already priced into Mt. Gox’s Bitcoin repayments. As such, there is a 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 been adding to their positions as the concentration metric has surged recently. 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 massive role in significant price surges for these meme coins since such an accumulation trend could send these tokens into price discovery and lead to price rallies for them.
From a technical analysis perspective, crypto analysts have predicted that more price rallies are on the horizon for Dogecoin. Crypto analyst Kevin (formerly OG Yomi) revealed that Dogecoin is about to form an inverse head and shoulders at the support level on the daily time frame. 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 foremost meme coin had always experienced pullbacks onto Fibonacci 0.618 before the huge rallies in previous cycles. He revealed that Dogecoin has again arrived at the Fibonacci 0.618, which means it is again ready for that massive rally.
Featured image from Getty Images, chart from TradingView
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