Dogecoin and Shiba Inu Price Rally: Lead Altcoin Recovery Ahead of Fed Decision

The altcoin market staged a broad recovery on Wednesday. Meme coins led the charge, with Dogecoin and Shiba Inu posting some of the sharpest gains across the entire crypto market. Strong capital inflows, rising open interest, and technical signals all pointed in the same direction, up.

Dogecoin Breaks Key Barrier as Short Squeeze Drives 15% Rally

Dogecoin climbed as much as 15% during Wednesday's session. The token moved swiftly from $0.099 to an intraday high of $0.112,  its strongest performance among the top ten cryptocurrencies by market cap. The memecoin has since retreated at the time of writing to trade at around $0.1058, up 7.77% in the last 24 hours.

The $0.10 level had acted as a ceiling for most of 2025. Dogecoin had failed to hold above it since February of last year. Wednesday's break above that threshold drew immediate attention from traders.

Futures markets reflected the surge in demand. Open interest in DOGE futures jumped more than 28% within a single day, reaching $1.81 billion. That figure marked the highest level recorded since October 10.

The rapid price move caught bearish traders off guard. Short positions were forced to close, adding upward pressure to an already rising market. According to CoinGlass data, short liquidations in the last 24 hours totaled $21.33 million. Long position liquidations, by contrast, came in at just $451,420, a fraction of that figure. The imbalance underscored how decisively the market had shifted against short sellers.

Shiba Inu Posts Largest Gain in Recent Weeks Following Golden Cross Signal

Shiba Inu followed a similar trajectory. SHIB rose from $0.00000612 to $0.00000656, registering a gain of more than 6%. At the time of writing, the token was trading up 2.3% over the prior 24 hours at $0.000006207.

The move aligned with a technical development on the 30-minute chart. The 50-period moving average crossed above the 200-period moving average, a pattern known as a golden cross. Traders often interpret this signal as a short-term bullish indicator, and in SHIB's case, it appeared to accelerate buying activity.

Open interest in Binance-listed SHIB futures rose nearly 14% within 24 hours. The trend was consistent with broader meme coin market behavior during the same period. Derivatives positioning confirmed that traders were not just buying spot , they were building leveraged long exposure.

Crypto market participants are watching developments beyond price charts. The U.S. Federal Reserve's two-day monetary policy meeting concluded on Wednesday. Federal Reserve Chair Jerome Powell and the Federal Open Market Committee were widely expected to hold interest rates steady at the current range of 3.50% to 3.75%.