Learn why Dogecoin and Shiba Inu are surging. These factors point to growing confidence and could be a sign of broader market momentum.
Highlights
Dogecoin and Shiba Inu prices are bullish.
The supply of Shiba Inus on exchanges has fallen to an all-time low.
Large Dogecoin holders have seen net flows increase by more than 1,000% in the past 24 hours.
The price of Dogecoin is at a critical juncture and could see a breakout. The cryptocurrency market has been steadily recovering recently, with Dogecoin and Shiba Inucoin seeing the highest price gains among the top 20, according to Coingecko. But why are these two meme coins rising? Do they signal the start of an altcoin season?
Reasons for the rise in Shiba Inu and Dogecoin prices
Dogecoin and Shiba Inu holders are working tirelessly to change the trend of these currencies after weeks of stagnation. Dogecoin’s recent price action suggests that these giants are waking up. Here are some of the reasons:
1. Dogecoin whale activity increased by 1000%
Onchain data shows that Dogecoin big holders are trying to continue the price rally that began last week. IntoTheBlock data shows that net flows of big holders increased from -2.23 million to 20.66 million DOGE, an increase of more than 1,000%, indicating an increase in Dogecoin activity.
This trend is positive for Dogecoin prices and means that whales are accumulating the asset.
Meanwhile, Dogecoin’s balance on exchanges saw an outflow of 43 million DOGE in the past 24 hours, further supporting previous observations that large holders may be accumulating the asset.
According to Coingecko, DOGE prices have risen 4.2% in the past 24 hours and are trading at $0.1134.
2. Shiba Inu's profitability is beyond imagination
The 30-day market-to-realized value (MVRV) ratio broke through a three-month high, according to Santiment data. When this happens, investors, on average, hold onto profitable assets, which boosts confidence and can lead to more buying pressure.
At the same time, SHIB exchange outflows also surged, suggesting that investors are moving their Shiba Inu coins to private wallets, likely for long-term holding. This behavior reflects bullish sentiment among investors who prefer to hold assets rather than trade them.
The Shiba Inu price has risen 10.3% over the past day, bringing the total weekly gain to 17.6%. The asset was hovering around $0.00001640 during London trading hours.
3. Launch of SHI stablecoin on Shibarium
Additionally, Shiba Inu’s Head of Marketing, Lucie, shared key details about the upcoming SHI stablecoin, which will be launched on the Shibarium blockchain. SHI is pegged to $0.01 and is designed to enhance the stability and utility of the Shiba Inu ecosystem.
The stablecoin is currently under development and undergoing rigorous testing to ensure its security. The news has created a lot of hype, especially with the upcoming SHIBACON event, and has led to a recent surge in the price of Shiba Inu Coin.
in conclusion
A large amount of on-chain activity and market dynamics have driven the recent surge in the prices of Dogecoin and Shibacoin. For Dogecoin, increased activity from large holders, with a 1,000% surge in net flows, suggests that whales are accumulating the asset, driving its upward momentum. Similarly, Shibacoin has seen increased profitability, as indicated by the 30-day MVRV ratio, which, combined with a decrease in exchange supply, suggests a reduction in bullish sentiment and selling pressure. These factors highlight growing investor confidence and the potential for further upside as both meme coins continue to attract market attention.
