Dogecoin Price Surges 7% as Trump Reacts to Fed Rate Decision – Is $0.20 Plausible?

Highlights:

• Dogecoin price has skyrocketed 7% to $0.18 as the crypto market rebounds.
• The US president has reacted to the recent Fed rate decision, calling the Fed Chair a Fool.
• DOGE technical indicators show further upside, potentially at the $0.20 level. 

Dogecoin price flaunts a bullish outlook, as it has rallied about 7% to the $0.18 mark. The explosive comeback is bolstered by the rising daily trading volume, which has soared 69% to $1.22B. Meanwhile, the meme coin market has rebounded 8.7% to $61.2 billion, showing bullish momentum. The dog-theme meme coin leads the pack, followed by SHIB and PEPE, which have increased by 6% and 16%, respectively.

Recently, the Federal Reserve (Fed) kept the rates unchanged at 4.24-4.5%. However, this triggered a reaction from US President Donald Trump, who called the Fed Chair a ‘’FOOL’’. 

BREAKING: President Trump says “Too Late Jerome Powell is a fool” after the Fed holds interest rates steady.

Trump says there is “virtually no inflation” with “tariff money pouring into the US.” pic.twitter.com/Bx0hEVfmrt

— The Kobeissi Letter (@KobeissiLetter) May 8, 2025

On the other hand, Trump has acknowledged that the US and the UK have reached a full and comprehensive trade agreement. With the recent developments, can the crypto market, more so the meme coins, gain momentum?

Dogecoin Price Outlook

Currently, the dog-themed meme coin has pushed into a consolidation channel, with the DOGE price oscillating between $0.15 and $0.19. This consolidation phase, however, may act as an accumulation phase before a strong leg to the upside. Meanwhile, the bulls are showing strength, as they have established a strong support at 0.16, coinciding with the 50-day MA. 

On the other hand, Ali Martinez, a popular analyst, has highlighted that a dip to the $0.14 level may present a strong buying opportunity in the Dogecoin price. According to the analyst, this could ignite a potential rebound to $0.30. 

This trendline has supported #Dogecoin $DOGE since October 2024. A dip to $0.14 could present a buying opportunity ahead of a potential rebound to $0.30.

Join me in this trade by signing up to @coinexcom using my referral link https://t.co/73n8mW9Y5p pic.twitter.com/lD9kr4BJOL

— Ali (@ali_charts) May 7, 2025

Meanwhile, with the strong support established at the $0.16 mark, the bulls could ignite a short-term rally towards the $0.19 mark. Heightened buying pressure will see further upside towards $0.20, $0.22, and $0.24. A break above the $0.26 mark will validate the bullish grip in the DOGE market. 

DOGE Technical Indicators Show Further Upside

The DOGE Relative Strength Index, currently at 60, points towards further upside. Its move above the 50-mean level indicates heightened buying pressure, as the bulls dominate. Further, the Moving Average Convergence Divergence shows a buy signal, calling for traders to buy more DOGE. This is manifested by the blue MACD line flipping above the orange signal line. Moreover, its position in the positive region further bolsters the positive outlook. 

On the flip side, the DOGE derivatives data flaunts a positive outlook. According to on-chain metrics, the DOGE volume has spiked by 59%, while the open interest has soared by 15%. Notably, the options volume and options open interest have skyrocketed by 11% and 34%, respectively. This outlook shows that trading activities are increasing as new money is flowing into the market. 

Moreover, increased options volume and open interest indicate heightened investor confidence. In a layperson’s language, this indicates that new positions are being opened and the existing positions are actively traded. This may cause a spike in Dogecoin price, potentially reclaiming the $0.20 mark. 

However, traders should be cautious of potential retracement, as early profiteering may commence in the market. In such a scenario, the Dogecoin price could retrace to the $0.16 support level. A breach below this level will cause further correction toward the $0.14 mark.