Dogecoin (DOGE) Surges 6% as Chinese Stimulus Boosts Crypto Markets
Dogecoin (DOGE) has emerged as one of the top-performing cryptocurrencies on September 26, with its price soaring over 6% to reach a monthly
Dogecoin (DOGE) has emerged as one of the top-performing cryptocurrencies on September 26, with its price soaring over 6% to reach a monthly high of $0.1154. This significant uptick can be attributed to two primary factors: China’s latest economic stimulus pledge and declining DOGE balances across major cryptocurrency exchanges.
China’s Economic Stimulus Sparks Market Optimism
The conclusion of the 24-member Politburo meeting, led by China’s Premier Xi Jinping, has injected fresh optimism into global markets. The Politburo called for increased fiscal spending, support for the struggling property sector, and “forceful” interest rate cuts, signaling an urgent response to China’s slowing economic growth.
This positive sentiment has spilled over into risk-on markets, benefiting Asian stocks and, by extension, cryptocurrencies like Dogecoin. The correlation between cryptocurrency prices and macroeconomic signals has been evident, as improved liquidity conditions and risk-on sentiment tend to boost demand for speculative assets.
Earlier this week, the People’s Bank of China (PBOC) unveiled a $142 billion stimulus package, further fueling market optimism. Historically, such packages have preceded strong rallies in the crypto market.
Dogecoin’s Exchange Outflows Signal Bullish Sentiment
Dogecoin’s price increase coincides with declining DOGE balances across top cryptocurrency exchanges. Data from CoinGlass shows significant withdrawals from major platforms:
- Binance: $6.12 million in DOGE withdrawals
- Bybit: $4.46 million in DOGE outflows
These outflows outpace the inflows seen on other exchanges like Coinbase and Kraken. The declining supply among wallets holding over 1 billion DOGE tokens further supports this trend.
This movement of funds away from exchanges typically indicates that investors are preparing to hold the asset for the long term, expecting future price appreciation.
DOGE/USD Technical Analysis: Falling Wedge Breakout
From a technical perspective, Dogecoin’s recent gains are part of a breakout from a falling wedge pattern. This pattern is formed when the price trends lower within a range defined by two contracting, descending trendlines.
The breakout target for DOGE is now set at $0.193, which coincides with the 0.786 Fibonacci retracement level. To reach this target, DOGE must overcome interim resistance levels:
- The 200-day exponential moving average (EMA) at approximately $0.117
- The 0.236 Fibonacci retracement level at around $0.122
Short-Term Outlook
While the overall trend appears bullish, short-term fluctuations are still possible. Recent analysis suggests that DOGE may face resistance around $0.1120. However, strong support exists at $0.1080, with bulls actively defending this level.
Key levels to watch:
- Resistance: $0.1095, $0.1120, $0.1132
- Support: $0.1080, $0.1065, $0.1050
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