Dogecoin Plummets 15% Before Fed Decision – Is This a Buying Opportunity or the Start of a Deeper Crash?

Dogecoin just got mauled by the markets—slashing 15% of its value as traders brace for the Fed's next move. The memecoin's volatility is on full display, proving once again that crypto doesn't wait for fundamentals.

What's driving the sell-off? Pure Fed fear. Investors are dumping risk assets ahead of the central bank's policy announcement, and DOGE—despite its cult following—isn't immune. The question now: will the Fed's words trigger a rebound or send the doge to the pound?

Technical traders are eyeing key support levels, while the 'buy the dip' crowd is already howling. But let's be real—this is Dogecoin we're talking about. Since when did logic ever apply?

One thing's certain: Wall Street's 'serious investors' are clutching their pearls. Meanwhile, crypto degens are probably loading up on leverage. Ah, the beautiful chaos of decentralized gambling—sorry, 'investing.'

Will DOGE Rally After The Fed’s Announcement?

The Federal Reserve has kept interest rates unchanged so far in 2025. The decision comes despite President Trump repeatedly asking Fed Chair Jerome Powell to reduce interest rates. A rate cut could lead to another bullish reversal for Dogecoin (DOGE) and the larger crypto market. Retail investors were more or less absent during the last market rally. High interest rates may have kept retail players at bay. Retail participants may ramp up their crypto investments if borrowing becomes easier.

While a rate cut has long been asked for, there is very little chance that the Federal Reserve will cut interest rates after its meeting. According to the CME FedWatch tool, there is a 96.9% chance that the Federal Reserve will keep interest rates unchanged after its July meeting.

Dogecoin (DOGE) and other crypto assets may consolidate if the Federal Reserve keeps interest rates unchanged. If the Fed decides to hike interest rates, we may see another market correction. On the other hand, if the Fed decides to cut interest rates, dogecoin (DOGE) and the larger market may see another bullish reversal.

The crypto market saw one of its most significant rallies in recent times earlier this month. The surge was fuelled by increased ETF inflows by institutional investors. A similar pattern could emerge after the Fed’s interest rate announcement. Continued ETF inflows could inspire more confidence from retail players. Such a development could also help DOGE’s price rally.