Dogecoin (DOGE) demonstrated considerable gains during the first days of January, climbing approximately 30% over a four-day period. Shiba Inu (SHIB) similarly posted strong returns, rallying 27% in what marks its most robust January performance since 2023. Both digital assets notably outpaced larger cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and XRP during this timeframe.
The marked increase in Dogecoin's value corresponds with a surge in institutional engagement prompted by the emergence of dedicated exchange-traded funds (ETFs) focused on DOGE spot exposure. The Grayscale DOGE Spot ETF (ticker: GDOG) and the Bitwise DOGE Spot ETF (ticker: BWOW) have experienced heightened demand following a period of relatively subdued activity since their debut in late 2025.
Specifically, daily net inflows into these ETFs spiked to $1.60 million on January 5 and $2.90 million on January 2, representing the first notable wave of institutional purchases in these products. Aggregate net inflows across the DOGE spot ETFs reached $6.24 million as of January 6, with almost the entirety of funds flowing in during the initial week of the month. This trend has attracted commentary from Bloomberg analysts who identify the 2x Dogecoin ETF as one of the best-performing ETFs in early 2026.
The influx of institutional capital via these ETFs signifies a potential shift in the market perception of Dogecoin, previously categorized largely as a speculative memecoin. The establishment of such products lends an element of legitimacy and structured access for investors seeking exposure to DOGE.
From a technical standpoint, Dogecoin has posted a 20.60% gain over the seven-day span following a breakthrough of key technical resistance levels. However, DOGE's price remains constrained below major exponential moving averages (EMAs). Despite this, the Supertrend indicator recently flipped bullish at the $0.126 mark, suggesting a possible reversal in the prevailing trend, even though the price formation currently reflects a bearish channel structure.
Technical support at $0.126 is critical; maintaining above this threshold along with reclaiming the 20-day EMA at $0.137 could pave the way for an accelerated advance toward resistance in the $0.16 to $0.17 range. Confirmation of bullish momentum would require a volume-backed break above the $0.15 resistance level. Conversely, failure to sustain above $0.126 would invalidate this bullish configuration.
Spot market flow data from Coinglass indicates that on January 7, Dogecoin experienced net outflows totaling $9.28 million. While such outflows typically might be interpreted as accumulation or transfers to cold storage, the concurrent downtrend infers that these movements could instead reflect capitulation or strategic liquidation rather than confident long-term holding.
Turning to Shiba Inu, the token has also seen notable price appreciation in early January, rising 27% overall and posting a 26.30% increase during the preceding seven days. A modest 3% retracement occurred within the last 24 hours, yet momentum indicators remain favorable. The Parabolic SAR flipped bullish at the $0.00000734 level, indicated by dots below the price, signaling emerging upward momentum despite prices lingering beneath most EMAs.
Currently, SHIB trades above its 20-day EMA at $0.00000806, yet faces resistance at the 50-day EMA of $0.00000828 and the midpoint of its price channel. A breakout above the 100-day EMA at $0.00000914 would further validate bullish continuation. However, failure to maintain support above the 20-day EMA would undermine the current upside scenario.
In contrast, major cryptocurrencies such as Bitcoin and Ethereum have lagged in performance, with Bitcoin holding near $90,909 and Ethereum around $3,143, both seeing respective weekly declines. XRP also experienced a decrease over the similar period. The divergence in performance between meme coins like DOGE, SHIB and larger, more established cryptos highlights a nuanced market environment.
Key Points
- Dogecoin surged 30% within four days, driven by heightened institutional inflows following the launch of DOGE spot ETFs.
- Shiba Inu experienced a 27% gain in early January, marking its strongest performance in this month since 2023 amid bullish technical signals.
- Technical indicators for DOGE suggest a possible bullish trend reversal if critical support and resistance levels hold.
- Bitcoin, Ethereum, and XRP underperformed in the same period, with all experiencing weekly declines.
Risks and Uncertainties
- Dogecoin faces technical risk if key support levels at $0.126 fail to hold, which would invalidate bullish setups.
- Net outflows observed in DOGE ETFs may signify capitulation or strategic selling rather than accumulation.
- Shiba Inu must overcome resistance at multiple EMAs to confirm sustained bullish momentum.
- The broader underperformance of major cryptocurrencies could influence sentiment and liquidity dynamics affecting DOGE and SHIB.