Because the Federal Open Market Committee (FOMC) meeting approaches, analysts closely watch the Dogecoin price movements, drawing parallels to its explosive rally in 2021. Historical trends suggest a good FOMC announcement could significantly impact the Dogecoin price, potentially triggering a rally.
Dogecoin Price Rally Linked To FOMC Decision
Back in January 2021, the FOMC opted to maintain rates unchanged, aiming to keep up ample liquidity within the United States (US) financial markets. This decision triggered an enormous shift in Dogecoin, with the meme’s price skyrocketing the subsequent day.
A crypto analyst, ChandlerCharts, recently shared an evaluation of the FOMC’s influence on Dogecoin’s future performance. Comparing two parallel charts, the analyst drew striking similarities between the Dogecoin price motion in January 2021 and 2025, each of which coincided with scheduled FOMC meetings.
The left chart shows that in January 2021, Dogecoin experienced an enormous rally, surging well above the 0.618 Fibonacci extension level on the $0.01 price point. On the time, the rally coincided with the FOMC meeting and the US Presidential inauguration, with the Federal Reserve’s rate announcement serving as a key catalyst to Dogecoin’s upward momentum.
Chandler illustrates Dogecoin’s current price structure on the suitable chart, with the same historically bullish pattern unfolding. DOGE is hovering around the important thing 0.382 Fibonacci level on the $0.33 price point. This zone, acting as a support area, was previously a launchpad for the Dogecoin price rally after the FOMC announcement in 2021.
DOGE is currently testing the $0.33 key support level, similar to it did in 2021. Its current price motion leading as much as January 2025 mirrors historical patterns, highlighting a major rally above the 0.618 Fib, a peak on the 1.0 Fibonacci level, and a subsequent retracement to the 0.236 Fib.
If history repeats itself and the upcoming FOMC on January 28 to 29 favors liquidity because it did in 2021, Chandler predicts that Dogecoin could skyrocket to $0.5, corresponding to the 0.618 Fibonacci level. The analyst also forecasts that similar market conditions could trigger a stronger rally to the $0.7 market peak on the 1.0 Fibonacci level.
Based on this bullish forecast, Chandler warns investors and traders to “brace themselves” as volatility is anticipated to rise leading as much as the FOMC announcement. While history doesn’t all the time determine future market movements, the similarities in market sentiment and liquidity conditions from a good rate decision make this a pivotal moment for the DOGE price.
Bearish Or Bullish? Upcoming FOMC Meeting Sets The Tone
Historically, the FOMC meeting held eight times a 12 months tends to influence the crypto market, because it offers insights into the FED’s monetary policy decision. Commenting on this, Daitaro, a crypto analyst on X, revealed that the crypto market often displays bearish or bullish sentiment leading as much as the FOMC meetings.
Following the FOMC’s rate announcement, real price motion occurs, resulting in either a pump or dump in top cryptocurrencies like Bitcoin and Dogecoin, amongst others. With the FOMC meeting set for today and tomorrow, the market’s response to a good or negative decision could significantly impact crypto prices.
Featured image from Adobe Stock, chart from Tradingview.com