Key Takeaways
Dogecoin (DOGE) gained 15 percent over the past 24 hours, leading a sharp recovery in meme coins after the Federal Reserve’s decision to hold interest rates steady spurred a rally across risk assets.
The move was accompanied by a 6 percent rise in rival Shiba Inu (SHIB), which formed a “golden cross,” a technical signal where the 50-day moving average crosses above the 200-day moving average that is often viewed by traders as a precursor to a longer-term uptrend, according to CoinGecko data as of April 29.
The rally saw Dogecoin’s price reach $0.1125, with trading volume climbing 40 percent. The broader altcoin market saw similar gains, with Solana (SOL) rising 0.97 percent and Avalanche (AVAX) adding 0.55 percent, per MarketWatch data. The Crypto Fear and Greed Index, a measure of market sentiment, has climbed to 47 from a low of 12 one month ago, indicating a significant shift in investor confidence.
The surge in speculative assets like Dogecoin and Shiba Inu suggests a potential return of retail interest to the crypto market, fueled by a more stable macroeconomic environment. This capital rotation into meme coins could increase volatility and sets the stage for traders to watch if these gains can be sustained heading into the next Federal Open Market Committee (FOMC) meeting in June.
The Federal Reserve’s decision to maintain its benchmark rate provided a tailwind for cryptocurrencies, which tend to perform well in lower-interest-rate environments as investors move away from safer assets like bonds.
The golden cross for Shiba Inu is the first such signal for the token in 2026, a technical event closely watched by chart analysts. While not a guarantee of future performance, it often signals a shift from a bearish to a bullish long-term trend.
The gains in meme coins reflect a wider trend of positive inflows and strengthening on-chain activity for the digital asset sector. According to SoSoValue, U.S.-based spot Ethereum ETFs have now seen three consecutive weeks of net inflows, while CryptoQuant data shows Ethereum exchange reserves are at their lowest level since 2016, suggesting accumulation.
The rally comes even as some institutional players show signs of selling. Lookonchain data revealed that wallets associated with Galaxy Digital moved approximately 45,000 ETH (worth over $100 million) to exchanges, a move often interpreted as a precursor to selling. However, the broad market advance absorbed the potential pressure.
This article is for informational purposes only and does not constitute investment advice.
