Meme Coins Rally: DOGE Hits $0.1 in Short Squeeze, SHIB Jumps on Golden Cross

The altcoin market turned green on Wednesday with most tokens already flashing oversold conditions. Meme coins rallied on strong inflows with Dogecoin and Shiba Inu posting up to double-digit gains. 

Dogecoin jumped as much as 15% to reach an intraday high of $0.112, posting stronger gains among the top ten cryptocurrencies by market cap. Following days of muted price action, Dogecoin saw a sharp move from $0.099 to $0.112, breaking the $0.1 barrier, which had previously limited its price for most of 2024 (since February).

Traders continue to pour capital into DOGE futures, lifting the OI by more than 28% in a single day to $1.81 billion, the highest since Oct. 10. The move higher caught Dogecoin shorts unaware, creating a squeeze that lifted the price higher.

According to CoinGlass data, a significant amount of short positions were liquidated in the last 24 hours, totaling $21.33 million while long positions surpassed $451,420.

SHIB jumps on golden cross

SHIB likewise saw a major surge, posting its largest gain in recent weeks. SHIB surged from $0.00000612 to $0.00000656, gaining more than 6%.

The move coincided with a golden cross on Shiba Inu's short-term charts. On the 30-minute chart, the MA 50 has risen above the MA 200. At the time of writing, SHIB was up 5.77% in the last 24 hours to $0.00000644. 

Binance-listed SHIB futures are showing a bullish setup, similar to that of Dogecoin. Shiba Inu open interest has increased nearly 14% in the last 24 hours, a trend seen for most meme coins in this timeframe. The Fed will announce its rate decision later on Wednesday, with volatility expected in the aftermath. 

The Fed's two-day monetary policy meeting wraps up on Wednesday, when outgoing Fed chair Powell and the Federal Open Market Committee are widely expected to keep interest rates on hold at the current 3.50% to 3.75% level.