Retail Bets Shift as Fed Signals Ease, Boost Altcoins

Dogecoin and XRP have both experienced notable price gains amid a broader altcoin rally, driven in part by market reactions to the U.S. Federal Reserve’s potential policy easing. Dogecoin rose by approximately 5.1% in the last 24 hours, trading at $0.22, while XRP gained 2%. These movements follow a muted Bitcoin performance and a broader shift in sentiment across the crypto market. Analysts attribute the rally to a combination of macroeconomic factors and specific catalysts, such as the anticipated launch of a Dogecoin exchange-traded fund (ETF) by REX Shares. The ETF announcement has generated significant attention, with some predicting a surge in crypto ETF activity in the coming months.

The recent U.S. jobs data, which showed weak employment figures, has intensified speculation that the Fed may implement rate cuts in the near term. This has led to increased risk appetite across financial markets, including crypto. Stephen Gregory, founder of Vtrader, suggested that the market may have overreacted to the jobs data, contributing to the current bullish momentum for altcoins like Dogecoin and TRON. The odds of a September rate cut have climbed above 90%, providing a supportive backdrop for crypto markets as investors seek higher-yielding assets.

Technical indicators and market sentiment also appear to be aligning in favor of Dogecoin. Analysts on TradingView, including CryptoJobs and Klejdi Cuni, have highlighted a falling wedge pattern on the Dogecoin price chart and emphasized key support levels around $0.205–$0.207. These levels have historically acted as a base for price rebounds, and some experts predict a potential 15% price surge if the anticipated ETF news materializes. Cuni also identified $0.23 and $0.24 as short-term price targets, suggesting that the token could consolidate before resuming its upward trajectory.

While Dogecoin has been the primary driver of the altcoin rally, XRP and other tokens like TRON and Solana have also seen gains. Justin Sun’s recent activities, including a stunt involving the WLFI token, have contributed to heightened interest in TRON. Meanwhile, XRP has benefited from speculative trading and broader market optimism. The growing interest in utility-driven and community-centric projects has also contributed to a shift in market dynamics. Newer tokens, such as Brett and Osaka Protocol, are gaining traction by offering staking mechanisms and layer-2 integrations, drawing attention away from traditional meme coins.

Looking ahead, the macroeconomic environment remains a key factor influencing market sentiment. The Federal Reserve’s dual mandate—balancing price stability and maximum employment—has become increasingly challenging as core inflation remains above 3%. This tension has led to a degree of uncertainty in the near term, despite strong short-term momentum in the crypto space. Analysts remain optimistic about the fourth quarter, with many expecting a bullish outlook driven by anticipated rate cuts and continued investor engagement. However, the path to year-end optimism is contingent on maintaining retail and institutional participation, as well as broader economic clarity.