Dogecoin (DOGE) experienced a significant surge, climbing up to 14% to reach an intraday high of $0.112 on Wednesday. This performance outpaced the broader cryptocurrency market ahead of the US Federal Reserve's upcoming interest rate decision. The increase in DOGE's price has raised speculation about a potential rally towards $0.33 in the near future.
Driving this momentum, Dogecoin's open interest surged by 25% within 24 hours to hit $1.74 billion, indicating a renewed interest from derivatives traders and institutional investors. This uptick in open interest, which has also risen by 46% over the past two weeks, is typically viewed as a bullish sign, as it suggests increased liquidity and investment in the market.
The rally coincides with the Federal Open Market Committee (FOMC) meeting, where market participants anticipate that interest rates will remain steady at 3.50%-3.75%. Historical patterns show that DOGE's price tends to rise in the days leading up to FOMC meetings, although it has faced corrections shortly after.