Dogecoin Drops Over 12%. Will the FOMC Meeting Today Revive Meme Crypto, Or is further descent Loomin

In a cryptocurrency market plagued by massive volatility, bearish runs, and uncertainty, Dogecoin (DOGE) has been heavily in the lead. Initially created as a satirical take on the crypto space, this meme-inspired digital asset has evolved into a formidable player, consistently ranking among the top cryptocurrencies by market capitalization, but recently, DOGE has been trapped in a heavy bear trend.

DOGE Price Chart: TradingView

As of today, Dogecoin's market cap stands at $17.9 billion, securing the 8th spot as the top crypto asset. Most cryptocurrencies have been painted in red over the past several weeks. In the last 7 days, Dogecoin has heavily recorded a drop of over 23% as of writing and over 40% over the past 30 days.

The imminent Federal Open Market Committee (FOMC) meeting, scheduled today, May 1st, is expected to provide crucial guidance on the economic outlook and potential rate cuts. This event could serve as a catalyst, potentially propelling the crypto market, including Dogecoin, into its next phase – be it a decisive recovery and upswing or a further descent.

  Amidst the market turmoil, Dogecoin's trading volume over the past 24 hours has been substantial, recording a  74% increase in the last 24 hours. This high liquidity highlights the token's enduring popularity and the unwavering interest of traders and investors.

DOGE Technical Analysis

Over the last four weeks, Dogecoin has exhibited a strongly bearish trend, dropping over 39% in the last 30 days. After hitting bullish flag resistance and marking a high of $0.22888 on March 28th, the token has been trading toward a crucial bullish flag support level, and impulsively breaking down past it and closing below the support on April 28th. The question on everyone's mind is whether Dogecoin can recover soon.

DOGEUSD Daily Chart : TradingView

On the 4-hour chart, price has also broken down past a recent low of 0.13027 and is now poised to test the next low of around 0.12253 zone. Below these levels is a huge fair value gap that could furthermore act as a magnet to pull the market price down and potentially fill it. With the heavy sell-off today, DOGE has had its  Relative Strength Index (RSI) reading at 23, an extremely oversold reading, showing a heavy bearish momentum. Considering it is in oversold territory, DOGE might find support soon and correct upwards before we can get a solid confirmation of whether we are to witness a recovery after the FOMC today or a continuation of the trend.

DOGEUSD 4-Hour Chart  : TradingView

Despite the recent challenges, Dogecoin's future remains promising, with top crypto analysts expressing bullish sentiment. Some experts suggest that DOGE could reach $0.50 and potentially achieve a new all-time high of $0.70 this summer, propelled by its unwavering bullish trend. Looking further ahead, predictive models anticipate a steady rise in Dogecoin's price, trading at an average of more than $1 in 2026.

However, the broader market pessimism poses a significant risk of further drops. In such a scenario, the current $0.13 level could provide a cushion for Dogecoin, while a drop below the $0.10 zone of the fair value gap could trigger extreme bearish conditions.