Both Dogecoin and Shiba Inu prices saw a bullish reversal in the past day and recorded notable gains during that time. With no clear progress from either camp on what could drive the recovery, the broader market outlook may provide the answer.
Dogecoin and Shiba Inu Respond to Bitcoin
The current recovery in the cryptocurrency market is being fueled by the pioneering cryptocurrency Bitcoin. In the final days, Bitcoin broke through several resistance points, during which time it rose above $71,000. Bitcoin’s recovery has sparked new positive sentiment among cryptocurrency investors, spreading to Dogecoin and Shiba Inu, among others.
What is driving the price of Bitcoin is ultimately why these meme coins are also surging, as the Bitcoin price recovery is the main driver behind the price rise of Dogecoin and Shiba Inu in the past day. This recovery is being driven in part by positive news coming out of the United States.
The latest JOLTS report on the U.S. job market shows that the market is beginning to stabilize once again. Apparently, the jobs-to-workers ratio has now fallen to a three-year low of 1.2, a low that dates back to 2021, the year of the last cryptocurrency bull market. This is because layoff figures are decreasing and employee quit rates remain stable.
During this period, investor sentiment exploded as more funds flowed into assets such as Bitcoin and Ethereum. According to a CoinShares report, digital asset investment products recorded inflows of $185 million last week alone, indicating optimism among institutional as well as individual investors. All of this created a catalyst for a surge in Bitcoin prices, which saw altcoins like Shiba Inu and Dogeocin surge in response.
SHIB overtakes DOGE
Both Dogecoin and Shiba Inu were on the rise over the past day, but the latter outperformed the former by a wide margin. According to data from CoinGecko, Dogecoin’s figures recorded a 3.7% gain in 24 hours. This pushed the price above $0.16 and increased the market capitalization to $23.6 billion.
Meanwhile, Shiba Inu saw double-digit gains, with a total gain of 10.2%, as shown by CoinGecko data. As a result of this recovery, the meme coin has now successfully cleared the $0.000026 resistance, pushing its market capitalization to over $15.4 billion.
However, both top meme coins lagged behind new investor favorite FLOKI, which is up more than 24% over the same period. Other meme coins such as PEPE, BONK, and Dogwifhat also showed gains, rising 2.7%, 7.9%, and 9.7% respectively.
Featured image created with Dall.E, chart from Tradingview.com