Are Dogecoin (DOGE) and Shiba Inu (SHIB) Poised for Further Gains? Popular Analyst Chips in

8 months ago 4

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TL;DR

Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced significant price increases of 30% and 10%, respectively, with analysts predicting further growth.
Key factors possibly contributing to Shiba Inu’s future rally are the token burn rate and advancements related to the L2 scaling solution Shibarium.

The cryptocurrency sector has rebounded in the past week, with two of the best-performing assets being Dogecoin (DOGE) and Shiba Inu (SHIB). The largest meme coins by market capitalization are up 30% and 10% on a 7-day scale, respectively.

According to some analysts the upswing is nowhere near its end and might lead to new peaks in the near future. Such a bullish statement was presented by the popular X user Rekt Capital.

The trader suggested that DOGE has ended its “macro downtrend” and begun a new “macro uptrend.” Rekt Capital believes closing above the $0.20 at the end of March might fuel a rally towards the $0.30 mark (a valuation unseen since October 2021).

Dogecoin’s price surge coincided with the increase of some important metrics related to its ecosystem. As CryptoPotato reported, aggregated daily volume (where each transaction is larger than $100K) jumped by nearly 100%, whereas daily active addresses spiked by 13%.

According to IntoTheBlock, nearly 90% of all DOGE holders are currently sitting on paper profits. The trends were much different in September last year when almost 60% of Dogecoin investors were underwater.

The analyst touched upon SHIB, too, predicting a rise to almost a new all-time high should the asset’s price surpass the major resistance level of $0.000033285. “Retest was successful. SHIB history is repeating itself,” Rekt Capital argued.

The meme coin’s rally is in tune with the increase of its burning mechanism. Yesterday (March 28), the SHIB burn rate exploded by 1,200%, resulting in over 51 million tokens destroyed.

Another factor that could fuel a Shiba Inu uptrend is the further advancement of the layer-2 blockchain solution Shibarium. Earlier this month, total transactions on the network surpassed the 400 million mark. Those willing to learn more about the feature and how it can foster the development of the meme coin, feel free to watch our dedicated video below: