The cryptocurrency market is once again turning its attention to meme coins, with Dogecoin (DOGE) and Shiba Inu (SHIB) showing promising signs of a potential rebound. After holding key support levels and displaying positive on-chain metrics, both assets are gaining momentum. With bullish sentiment building due to favorable funding rates, increased dormant token movement, and constructive technical patterns, DOGE and SHIB may be poised for double-digit percentage gains in the near term.
This article explores the underlying factors driving renewed optimism in these dog-themed cryptocurrencies, analyzes their current price structures, and provides data-backed forecasts for what could come next.
Positive Market Sentiment Builds Around DOGE and SHIB
One of the clearest indicators of shifting market dynamics is the funding rate—a critical metric in futures trading that reflects traders’ sentiment. According to Coinglass, the open interest (OI)-weighted funding rates for both DOGE and SHIB are currently positive, signaling that long positions (bulls) outnumber short positions (bears).
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A positive funding rate means longs are paying shorts to maintain their leveraged positions. While this might seem counterintuitive, it actually indicates strong demand and confidence among buyers. For Dogecoin, the OI-weighted funding rate stands at 0.0094%, while Shiba Inu clocks in slightly higher at 0.0101%—both firmly in bullish territory.
This growing optimism suggests that traders expect upward price action, increasing the likelihood of a self-fulfilling rally as more participants enter long positions.
On-Chain Data Reveals Dormant Tokens on the Move
Another powerful signal comes from on-chain analytics platform Santiment, which tracks the Spent Output Age Distribution (SOAD)—a metric that measures how long dormant tokens have been held before being moved.
When a large number of old coins suddenly move after extended periods of inactivity, it often precedes significant price movements. Historically, spikes in SOAD have correlated with upward price trends for both DOGE and SHIB.
Recent data shows just such a spike, indicating that long-term holders are becoming active again. This movement could reflect renewed confidence or strategic accumulation ahead of a broader market uptick. Either way, the timing aligns closely with the current stabilization near key support zones.
Such behavior from dormant wallets often acts as a catalyst, especially when combined with improving technical conditions.
Dogecoin Price Outlook: Targeting a 20% Upside
Dogecoin has demonstrated resilience by consistently defending its 200-day exponential moving average (EMA), currently sitting around $0.21. As of this analysis, DOGE is trading above this crucial level at approximately $0.23, suggesting that bullish momentum may be regaining control.
From a technical perspective, if the 200-day EMA holds as support, Dogecoin could climb up to **$0.27**—representing a potential **20% gain** from current levels. This target aligns with the 50% Fibonacci retracement level between DOGE’s August 2023 low ($0.05) and its December 2024 high ($0.48).
The daily Relative Strength Index (RSI) further supports this outlook, registering at 61—above the neutral 50 threshold and indicating strengthening bullish momentum without yet entering overbought territory.
However, traders should remain cautious. A close below the $0.21 support could invalidate the bullish setup and open the door for a retest of the next weekly support level near **$0.18**.
Shiba Inu Eyes a 30% Rebound From Key Support
Shiba Inu has similarly shown signs of stabilization, finding support near its 50-day EMA at $0.000013. Since last Saturday, SHIB has held above this level and is now trading around $0.000014—a zone that also coincides with a previously broken downtrend line drawn from multiple highs since mid-December.
This confluence of technical factors creates a strong support base, increasing the probability of a sustained bounce.
If momentum continues to build, Shiba Inu could surge by as much as 30%, targeting the next daily resistance level at $0.000019. This would mark a significant recovery and potentially reignite broader interest in the memecoin ecosystem.
Like DOGE, SHIB’s daily RSI is reading at 61, reinforcing the presence of upward momentum. The combination of solid support, improving indicators, and rising trader sentiment paints an encouraging picture for SHIB holders.
On the downside, a close below $0.000013 could lead to further selling pressure, possibly pushing prices back toward April 16’s low of **$0.000011**.
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Frequently Asked Questions (FAQ)
Q: What causes meme coins like DOGE and SHIB to rebound?
A: Meme coins often rebound due to a mix of technical support holding, increased trading volume, positive market sentiment, and social media or influencer-driven hype. On-chain activity from long-term holders also plays a key role.
Q: Are DOGE and SHIB good long-term investments?
A: While both have strong communities and brand recognition, they remain highly volatile. Long-term viability depends on adoption, utility development, and overall market cycles. Investors should conduct thorough research and consider risk tolerance.
Q: How do funding rates affect cryptocurrency prices?
A: Positive funding rates suggest more traders are betting on price increases via futures contracts. This can fuel upward momentum as exchanges incentivize shorts to exit and bulls to enter, creating upward pressure.
Q: What does a rising Spent Output Age Distribution mean?
A: It means older coins that haven’t moved in months or years are being spent or transferred. This often signals that long-term holders are taking action—either selling or preparing for a new trend—which can precede major price moves.
Q: Can DOGE reach $1 again?
A: While possible in a strong bull market fueled by speculation and adoption, reaching $1 would require unprecedented demand given DOGE’s large supply. Most analysts view such a target as highly optimistic rather than probable.
Q: Is now a good time to buy SHIB or DOGE?
A: With both coins holding key support levels and showing early signs of reversal, some traders see this as a strategic entry point. However, confirmation through sustained volume and breakout patterns is recommended before entering positions.
Final Thoughts: Meme Coins Regain Momentum
Dogecoin and Shiba Inu are more than just internet jokes—they’ve evolved into recognizable digital assets with active communities and measurable on-chain behaviors. Current data suggests that both DOGE and SHIB are stabilizing after recent corrections, supported by positive funding rates, awakening dormant supply, and favorable technical setups.
With Dogecoin eyeing a 20% rise toward $0.27 and Shiba Inu targeting a 30% rebound to $0.000019, the path forward looks increasingly constructive—provided key support levels hold.
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As always, traders should monitor volume, on-chain flows, and broader market conditions to confirm any emerging trends. While meme coins carry higher risk, they also offer opportunities for those who understand the signals behind the noise.