Amid growing pressure over meme coins, Dogecoin bulls anticipate a recovery run like 2021. Will the upcoming FOMC meeting fastrack DOGE price to the long-awaited $1 milestone?
As Bitcoin BTC $83 554 24h volatility: 1.9% Market cap: $1.66 T Vol. 24h: $55.77 B reclaims the $100,000 mark, the Crypto Fear Index maintained its neutral position at 53. Amid the recovery condition, the increased volatility has significantly impacted the meme coin market, with Dogecoin DOGE $0.16 24h volatility: 5.2% Market cap: $24.28 B Vol. 24h: $1.91 B registering an 11% drop over the past seven days.
The meme coin’s market cap has dropped to $93.5 billion, with Dogecoin gatekeeping $49.13 billion. Dogecoin seems to be on the verge of another parabolic rise, based on its historical price movements and the rising anticipation in the market. Is Dogecoin ready to reclaim the $1 mark?
Dogecoin Price Analysis Reveals a V-Shift Reversal in Play
In a recent 4-hour price chart, the Dogecoin price action reveals a short-term V-shift reversal from the $0.30 psychological mark. The V-shift recovery comes in confluence with the bullish divergence in the RSI line.
However, the recovery run fails to surpass the $20 EMA line and retests the 38.20% Fibonacci level at $0.33. Currently, DOGE trades at a market price of $0.33229 and hints at a potential post-retest reversal.
Based on the Fibonacci levels, the upside potential brings the $0.66443 or the 1.618 Fibonacci level on the bullish horizon. A sustained recovery could set the stage for the DOGE price to target these key levels.
Historical Insights and FOMC Influence on Dogecoin
Amid the possibility of a bullish revival, Chandler Charts provides a key insight into Dogecoin’s historical price movements. With the upcoming FOMC meet, Dogecoin shows potential for a parabolic rise.
Brace yourselves. FOMC is coming. ⚔️
Back in January 2021, the FOMC decided to keep rates unchanged, helping the market stay steady and ensuring plenty of liquidity. $DOGE literally exploded the day after. Based on current forecasts and market sentiment, it seems likely the FOMC… pic.twitter.com/SATSiAYKln
— Chandler⚡️ (@ChandlerCharts) January 27, 2025
In the 2021 bull market, when the FOMC decided to keep the rates unchanged, the stability in the broader market led to increased liquidity. With the extra dough, the Dogecoin prices exploded in a few days.
Adding fuel to the bullish speculations, Martinez Ali, an independent cryptoanalyst, suggests avoiding bearish positions on Dogecoin. In his recent X post, Martinez highlights the possibility of Dogecoin repeating its massive parabolic rise of 2021.
How do you bet against #Dogecoin $DOGE when, at any moment, it could surge nearly 900% in just 48 hours, like it did back in 2021? pic.twitter.com/hUg0uWkG3Z
— Ali (@ali_charts) January 28, 2025
With the DOGE price standing on the verge of giving a nearly 900% surge in 48 hours like 2021, the $1 price target seems conservative if history repeats itself. Hence, if the upcoming FOMC meeting decides to maintain a similar approach, the broader market sentiment curates a similar roadmap for Dogecoin to potentially reclaim the $1 mark.
Dogecoin Derivatives Reflect Bullish Sentiment
Along with the rising speculations, the Dogecoin open interest has risen by 2.94%, nearing the $4 billion mark. Furthermore, the long-to-short ratio, reflecting the number of open bullish and short positions, has significantly recovered.
Currently, the long-to-short ratio stands at 0.9455 compared to 0.90 over the past month during the recent pullback. Additionally, the Dogecoin open interest-weighted funding rate has turned positive again after briefly being negative at minus 0.0064%.
Currently, it remains at 0.0049% and continues to recover. This reflects a growing confidence among bullish traders who are willing to pay the extra premium for their bullish positions, signaling increased optimism for Dogecoin’s upward movement.
Dogecoin’s near-term outlook appears optimistic, supported by strong open interest, bullish sentiment, and historical price patterns aligning with market catalysts like the upcoming FOMC meeting. If the $0.33 support holds and a breakout occurs, DOGE price could test the $0.66443 Fibonacci level and potentially reclaim the $1 mark.
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