As 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 favorable 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 keep rates unchanged, aiming to maintain ample liquidity in the United States (US) financial markets. This decision triggered a massive shift in Dogecoin, with the meme’s price skyrocketing the next day.

A crypto analyst, ChandlerCharts, recently shared an analysis of the FOMC’s influence on Dogecoin’s future performance. Comparing two parallel charts, the analyst drew striking similarities between the Dogecoin price action in January 2021 and 2025, both of which coincided with scheduled FOMC meetings. 

The left chart shows that in January 2021, Dogecoin experienced a massive rally, surging well above the 0.618 Fibonacci extension level at the $0.01 price point. At 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 right chart, with a similar historically bullish pattern unfolding. DOGE is hovering around the key 0.382 Fibonacci level at 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, just like it did in 2021. Its current price action leading up to January 2025 mirrors historical patterns, highlighting a significant rally above the 0.618 Fib, a peak at 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 as 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 at the 1.0 Fibonacci level. 

Based on this bullish forecast, Chandler warns investors and traders to “brace themselves” as volatility is expected to rise leading up to the FOMC announcement. While history doesn’t always determine future market movements, the similarities in market sentiment and liquidity conditions from a favorable 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 year tends to influence the crypto market, as 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 up to the FOMC meetings.

Following the FOMC’s rate announcement, real price action occurs, leading to either a pump or dump in top cryptocurrencies like Bitcoin and Dogecoin, among others. With the FOMC meeting set for today and tomorrow, the market’s reaction to a favorable or negative decision could significantly impact crypto prices.

Featured image from Adobe Stock, chart from Tradingview.com

The MOVE price has surged over 15% today following developments that present a bullish outlook for the crypto. One such development is that Movement, the coin’s native network, is among firms discussing blockchain use with Elon Musk’s team.

Why The MOVE Price Has Surged Over 15% Today

The MOVE price has surged over 15% following reports that Movement, the network behind the token, is among firms that are discussing blockchain use with Elon Musk’s Department of Government Efficiency (DOGE) team.

CoinGape has reported that Elon Musk’s DOGE Department is eyeing the use of blockchain technology for government efficiency efforts. The department looks to be forging ahead with these plans, considering that firms like Movement are already in talks with the team.

Movement’s discussion with Musk’s DOGE is bullish for the MOVE price, considering how it could lead to wider adoption of the crypto token.

Meanwhile, MOVE has also surged due to Donald Trump’s World Liberty Financial purchase of the crypto token. Arkham Intelligence data shows that the DeFi platform bought 2.398 million MOVE for $1.94 million. This continues the accumulation trend by World Liberty Financial, which has bought several altcoins since Trump took office.

Rushi Manche, the co-founder of Movement Labs, commented following these developments. Regarding World Liberty Financial’s purchase, he said,

We are proud to be the first altcoin, first modern blockchain platform, and first alternative vm under the new administration. MOVE is Made in America.

Meanwhile, in another X post, Manche hinted that he and his team were indeed in discussion with Elon Musk’s DOGE, as he reacted to reports around this development.

Another Bullish Fundamental

Another reason why the MOVE price has surged today is because the Movement network developer mainnet just launched. Per the announcement, this marks the beginning of the second phase of the Movement network launch plan.

Now, developers can start deploying on the blockchain network. The new features that come alongside this launch include core infrastructure deployment, technical docs and dev resources release while select teams can start deploying applications. This developer mainnet is slated to last until mid-February.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.