Dogecoin Surges 14% Amidst Broader Market Rally and Derivatives Interest

Dogecoin (DOGE) gained as much as 14% on Wednesday, leading a broader relief rally across global risk markets ahead of the US Federal Reserve decision on interest rate cuts.

Dogecoin rallied up to 14% to $0.112 on Wednesday, outperforming the wider crypto market.

Dogecoin open interest jumped 25% in 24 hours to $1.74B, signaling growing derivatives interest and institutional participation.

A 2023-style fractal suggests DOGE price could rally 300% in the coming weeks.

Dogecoin open interest surges 25%

DOGE rose as much as 14% to an intraday high of $0.112 on Wednesday from a low of $0.097, outperforming the broader crypto market.

Dogecoin’s rally was fueled by several factors, including the launch of 21Shares’ physically-backed Dogecoin exchange-traded product (ETP) on Xetra, Germany’s leading electronic trading platform.

The memecoin’s open interest (OI) surged 25% over the last 24 hours and 46% over the last two weeks to $1.74 billion on Wednesday, signaling the return of derivatives traders.

Futures OI increasing alongside the price indicates a growing interest from institutional investors, which is generally seen as bullish, as it tends to increase liquidity and attract more trading capital.

Dogecoin’s rally also comes ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday, with market participants pricing in a 100% chance that interest rates will be left unchanged at 3.50%-3.75%.

DOGE’s reaction to FOMC rate cut decisions in 2025 and 2026 shows a clear pattern. The price often moved higher in the days leading up to the meeting, followed by mostly negative returns thereafter, as illustrated in the chart.

Previous FOMC-linked corrections have coincided with sharp deleveraging phases, last seen in March, when a 15% DOGE price drop was accompanied by a $890 million decline in futures OI and $30 million in total Dogecoin liquidations.

DOGE’s 2023 fractal projects 300% price rally

The DOGE/USD pair is currently displaying a technical pattern that follows a 2023 fractal, in which Dogecoin gained 300%. The weekly chart shows the price bouncing off an ascending trend line that has supported it since mid-2022.

A bullish cross from the moving average convergence divergence (MACD) indicator also confirmed the price bottom.

Dogecoin’s current price action is following a similar pattern, again bouncing off the same structural support and a confirmed bullish MACD crossover.

Dogecoin’s “weekly chart looks clean: bottom looks in, structure is holding,” analyst Trader Tardigrade said in a recent post on X, adding that the “next leg could send” the DOGE/USD pair to $1.

If history repeats itself, DOGE price may rally by more than 300% toward $0.33 over the next few weeks.