Dogecoin Up 12% in Pre-FOMC Rally: Will DOGE’s Bull Turn Back?
Dogecoin (DOGE) rose as much as 12% on Wednesday.
Main Receptors:
Dogecoin rose as much as 14% to $0.112 on Wednesday, boosting the broader crypto market. Dogecoin open interest jumped 25% to $1.74 billion in 24 hours, reflecting demand and institutional participation.
Dogecoin open interest increased by 25%.
DOGE rose from a low of $0.097 on Wednesday to $0.112 during the day, with DOGE outperforming the broader crypto market.
Related: Price Predictions 4/24: BTC, ETH, XRP, BNB, SOL, DOGE, HYPE, ADA, BCH, XMR
Dogecoin's rally was fueled by a number of factors, including the launch of 21Shares' physically backed Dogecoin exchange-traded product (ETP) on Germany's leading electronic trading platform, Xetra.
Source: X/21Shares
Memecoin's open interest (OI) surged 25% over the past 24 hours and 46% over the past two weeks to $1.74 billion on Wednesday, indicating a return to derivatives traders.
Futures OI increase alongside the price indicates growing demand from institutional investors, which is generally seen as bullish, which can increase liquidity and attract more trading capital.
DOGE OI on all exchanges. Source: Glassnode
Dogecoin's rally comes ahead of Wednesday's Federal Open Market Committee (FOMC) meeting with market participants Value in 100% probability Interest rates remain unchanged at 3.50%-3.75%.
The DOGE's response decisions to the FOMC in 2025 and 2026 show a clear pattern. In the days leading up to the rally, the price was higher several times, followed by mostly negative returns as shown in the chart.
DOGE/USD Daily Chart. Source: Cointelegraph/Trading view
Previous FOMC-related corrections have been seen in March, with a 15% DOGE price cut with $890 million in OIA futures and a $30 million drop in total Dogecoin liquidity, consistent with large transmission levels.
DOGE 2023 fractal projects 300% price rally
The DOGE/USD pair is currently showing a technical pattern following the 2023 fractal, in which Dogecoin has gained 300%. The weekly chart shows an upward trend that the price will support from mid-2022.
A large cross from the moving average converging divergence (MACD) indicator confirmed that the price is bearish.
DOGE/USD Weekly Chart. Source: Cointelegraph/Trading view
Dogecoin's current price action is following a similar pattern, again showing the same structural support and bearish MACD crossover.
Dogecoin's “Weekly Chart Looks Clean: Bottom Looks Inside, Holds Structure” Analyst Trader Tardigrade he said. In a recent post on X, adding, “The next leg could send the DOGE/USD pair to $1.”
If history repeats itself, the price of DOGE could rise more than 300% to $0.33 in the next few weeks.
According to Cointelegraph reportedFurther confirmation of a trend reversal now hinges on the DOGE/USD pair crossing the key $0.10-$0.11 protection zone.
