Dogecoin Surges to $2B Volume as Fed Eyes Crypto

Dogecoin (DOGE) trading volume surged to $2 billion on Friday, as the cryptocurrency's price staged a strong comeback. After three consecutive days of declines, Dogecoin rebounded slightly, reaching an intraday high of $0.261 on Friday.

The sudden increase in trading volume and price recovery has caught the attention of Federal Reserve officials, who are closely monitoring the cryptocurrency market as they consider their next monetary policy moves. The Fed has already dropped its benchmark rate by a full percentage point in late 2024, but policymakers have recently advocated for a more cautious approach.

Analysts suggest that Dogecoin's relief rally may be capped by selling at the $0.30 level. If the price falls from its current levels, bears may attempt to drive the Dogecoin price below $0.20. However, a break and closing above $0.30 would indicate that the bears have given up, potentially signaling that a bottom is in place. In this scenario, Dogecoin may seek to break over the daily SMA 50 at $0.33 before extending the move to $0.434.