Today, Dogecoin and Shiba Inu are experiencing significant price increases, marking a positive trend for these popular meme coins, which have recently seen stagnant trading. This uptick follows macroeconomic developments that have provided greater clarity for the market.
Reasons Behind Today’s Surge for Dogecoin and Shiba Inu
According to CoinMarketCap, both Dogecoin and Shiba Inu have risen by over 4% in the past 24 hours. This increase coincides with the US Federal Reserve’s decision to keep interest rates steady. Typically, an unchanged rate might be considered negative for cryptocurrency, but Fed Chair Jerome Powell’s comments after the FOMC meeting offered optimism, fueling the recent price rise.
Powell noted that the US economy is performing well, with decreasing inflation rates. He mentioned the ongoing tariffs from the Trump administration as the only major concern, contributing to the decision to maintain the current rates. These tariffs have led investors to view assets like Bitcoin as hedges against macroeconomic risk, thus favoring Dogecoin and Shiba Inu. Last week, Bitcoin climbed to $97,000 amidst tariff uncertainties, while Dogecoin and Shiba Inu remained stable, gearing up for the current surge. Following Powell’s remarks, Bitcoin even reached $99,000, further influencing Dogecoin and Shiba Inu’s upward movement.
The potential upswing is also attributed to impending trade discussions between the US and China, set to commence on May 10. Both nations have enforced substantial tariffs on each other, negatively affecting the markets. However, there is renewed hope that these discussions may lead to an agreement, which would benefit the leading meme coins as well as the wider cryptocurrency market.
In addition, US Treasury Secretary Scott Bessent has indicated that the US might soon establish trade agreements with 17 key trading partners, a development that is seen as favorable, as it could alleviate the adverse effects of the existing tariffs.
Potential for DOGE to Hit $0.30
Crypto analyst Trader Tardigrade predicts that Dogecoin may reach as high as $0.30 due to this breakout potential. In a recent post, he highlighted that DOGE’s daily chart appears to be forming a “Diamond Bottom” reversal pattern, signaling a possible transition from a downtrend to an uptrend.
The analysis suggests a target of $0.28, with the possibility of breaching the significant $0.30 mark. Another crypto analyst, Master Kenobi, echoed this optimistic perspective, implying that Dogecoin could even achieve the much-anticipated $1 milestone if Bitcoin maintains its positive trajectory.
