Bear Market Rally? DOGE and TRUMP Momentum Fades Ahead of Fed Meeting

Weekly losses for TRUMP are the worst in the top five as the token has retreated by 22.1% during this period to stand at $10.65 at the time of writing.

The imminent increase of TRUMP’s circulating supply as vesting schedules for insiders start to expire has apparently outweighed the latest marketing gimmick from the project’s team to draw interest to this meme coin.

President Trump has offered a gala dinner to the top 220 TRUMP holders in a move that could aim to cushion the bearish impact that a higher supply could have on the token in the near term.

The event is scheduled to take place in the White House on May 22 while the top 25 token holders will get an exclusive tour through the Presidential mansion and will be received by the head of state himself before the gala dinner.

Naturally, this caused a significant spike in the price of TRUMP that pushed the token above its key moving averages. However, the rally has been fading lately as the meme coin experienced significant selling pressure once it got to $16.

No Rate Cut Expected for This Week

Similarly, DOGE has seen its rally weakened by the market’s cool-down ahead of this week’s Federal Reserve meeting.

The Federal Open Market Committee (FOMC) will make a decision on interest rates tomorrow. Nearly 97% of market participants surveyed by FedWatch believe that rates will not be changed in this meeting.

Hence, if the Fed surprises everyone with a slight 25 basis point cut, the markets could rally as this would indicate that economic conditions have worsened beyond expected and that supports further cuts down the road than market participants initially anticipated.

This is all bullish for cryptos as lower rates result in higher liquidity in the mid-term.

TRUMP Breaks Below Key EMA Supports

Looking at the charts, we can see that trading volumes reach their highest levels when the price gets to the $10.5 and $14 area.

TRUMP has now declined below its point of control (POC), which sits at $12.5, meaning that bears are in control of the price action right now.

The Relative Strength Index (RSI) has dropped below the signal line while the MACD’s histogram has now shifted to negative territory. This is all bearish and points to further weakness down the road as the rally cools down.

However, the most critical bearish signals for TRUMP are an upcoming bearish crossover between the 21-day and 50-day EMA. This death cross indicates that the sell-off is accelerating.

Nothing stands in the way of TRUMP to retest the $8 area. The President’s team could try to hype up the token though by further promoting the gala dinner event. However, as the circulating supply rises as a result of expired token lockups, the selling pressure could increase in the next few days.

Dogecoin Key Support to Watch Stands at $0.15250

DOGE’s outlook is a bit better as the token bounced off its daily POC during today’s session and after the New York market opened.

This is the key support to watch during the day at $0.16750. A break below could also accelerate the decline. However, the market structure for DOGE is stronger as the price made multiple higher lows along the way.

The current valid low sits at $0.15250. If the price breaks below this area it would confirm a change of character and the beginning of a trend reversal.

In contrast, if the price breaks above the $0.1950 level, it would confirm a break of structure, meaning that the uptrend will now be ready to keep marching onward toward the next target at around $0.22 per token.