Dogecoin price is at a crucial point with a potential breakout in the works. The crypto markets have been recovering steadily of late, and Dogecoin and Shiba Inu coin prices show the highest gains in the top 20, according to Coingecko. But why are these two meme coins rising? Could they be signalling the beginning of an altseason?
Reasons Why Shiba Inu and Dogecoin Prices Are Rising
Dogecoin and Shiba Inu holders are working tirelessly to change the trajectory of these coins after weeks of stagnation. Recent Dogecoin price action suggests these giants are waking up. Here are some of the reasons why:
1. 1000% Increased Dogecoin Whale Activity
Onchain data suggests that Dogecoin large holders are working on extending the price rally that began last week. IntoTheBlock data shows that large holder netflow has increased by over 1000% from -2.23 million to 20.66 million DOGE, suggesting increased activity.
This trend is bullish for Dogecoin price, implying whales are accumulating the asset.
At the same time, Dogecoin’s balance on exchanges saw an outflow of 43 million DOGE over the last 24 hours, further supporting the previous observation that large holders could be accumulating the asset.
DOGE price increased by 4.2% in the last 24 hours and is trading at $0.1134, per Coingecko.
2. Shiba Inu Profitability Is Over The Roof
Santiment data shows that the 30-day Market Value to Realized Value (MVRV) ratio broke a three-month high. When this happens, investors are, on average, holding their assets at a profit, leading to increased confidence and potentially more buying pressure.
Further, the spike in the MVRV can indicate a shift in market sentiment towards a more bullish outlook.
Additionally, the supply of Shiba Inu on exchanges dropped to an all-time low, which means that fewer tokens are available for sale, reducing selling pressure and potentially leading to price increases.
This also coincided with a spike in SHIB exchange outflows, which shows that investors are transferring their Shiba Inu coin to private wallets, potentially for long-term holding. This behaviour reflects a bullish sentiment among investors, who prefer to hold onto their assets rather than trade them.
The Shiba Inu price increased 10.3% over the last day, bringing total weekly gains to 17.6%. The asset hovered around $0.00001640 during the London trading session.
3. SHI Stablecoin Launch on Shibarium
Additionally, Shiba Inu’s marketing lead, Lucie, has shared key details about the upcoming SHI stablecoin on the Shibarium blockchain. Set to be pegged at $0.01, SHI aims to enhance stability and utility within the Shiba Inu ecosystem.
The stablecoin is currently under development, and rigorous testing is being done to ensure its security. This news has generated significant hype, especially with the approaching SHIBACON event, and has contributed to a recent surge in the Shiba Inu coin price.
Conclusion
Significant on-chain activities and market dynamics have driven the recent surges of the Dogecoin price and Shiba Inu coin price. For Dogecoin, the increased activity among large holders, with a 1000% spike in netflow, suggests that whales are accumulating the asset, contributing to its upward momentum. Similarly, Shiba Inu has seen a rise in profitability, as indicated by the 30-day MVRV ratio, coupled with a decrease in its supply on exchanges, signaling bullish sentiment and reduced selling pressure. These factors highlight the growing confidence among investors and the potential for further gains, as both meme coins continue to capture market attention.
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