As the Federal Open Market Committee (FOMC) assembly approaches, analysts carefully watch the Dogecoin price movements, drawing parallels to its explosive rally in 2021. Historical developments counsel a good FOMC announcement may considerably influence the Dogecoin worth, probably triggering a rally.
Dogecoin Price Rally Linked To FOMC Decision
Back in January 2021, the FOMC opted to maintain charges unchanged, aiming to take care of ample liquidity within the United States (US) financial markets. This choice triggered a large shift in Dogecoin, with the meme’s worth skyrocketing the subsequent day.
A crypto analyst, ChandlerCharts, not too long ago shared an evaluation of the FOMC’s affect on Dogecoin’s future efficiency. Comparing two parallel charts, the analyst drew placing similarities between the Dogecoin worth motion in January 2021 and 2025, each of which coincided with scheduled FOMC meetings.
The left chart exhibits that in January 2021, Dogecoin skilled a large rally, surging properly above the 0.618 Fibonacci extension degree on the $0.01 worth level. At the time, the rally coincided with the FOMC assembly and the US Presidential inauguration, with the Federal Reserve’s fee announcement serving as a key catalyst to Dogecoin’s upward momentum.
Chandler illustrates Dogecoin’s present worth construction on the precise chart, with an analogous historically bullish pattern unfolding. DOGE is hovering round the important thing 0.382 Fibonacci degree on the $0.33 worth level. This zone, performing as a help space, was beforehand a launchpad for the Dogecoin price rally after the FOMC announcement in 2021.
DOGE is at present testing the $0.33 key support level, identical to it did in 2021. Its present worth motion main as much as January 2025 mirrors historic patterns, highlighting a big rally above the 0.618 Fib, a peak on the 1.0 Fibonacci degree, and a subsequent retracement to the 0.236 Fib.
If historical past repeats itself and the upcoming FOMC on January 28 to 29 favors liquidity because it did in 2021, Chandler predicts that Dogecoin may skyrocket to $0.5, similar to the 0.618 Fibonacci degree. The analyst additionally forecasts that comparable market situations may set off a stronger rally to the $0.7 market peak on the 1.0 Fibonacci degree.
Based on this bullish forecast, Chandler warns traders and merchants to “brace themselves” as volatility is expected to rise main as much as the FOMC announcement. While historical past doesn’t all the time decide future market actions, the similarities in market sentiment and liquidity situations from a good fee choice make this a pivotal second for the DOGE worth.
Bearish Or Bullish? Upcoming FOMC Meeting Sets The Tone
Historically, the FOMC assembly held eight occasions a yr tends to influence the crypto market, because it affords insights into the FED’s financial coverage choice. Commenting on this, Daitaro, a crypto analyst on X, revealed that the crypto market typically shows bearish or bullish sentiment main as much as the FOMC conferences.
Following the FOMC’s rate announcement, actual worth motion happens, resulting in both a pump or dump in high cryptocurrencies like Bitcoin and Dogecoin, amongst others. With the FOMC assembly set for in the present day and tomorrow, the market’s response to a good or adverse choice may considerably influence crypto costs.
Featured picture from Adobe Stock, chart from Tradingview.com
