Dogecoin Soars on China Stimulus and Exchange Outflows
Dogecoin Price Surge: Key Factors and Technical Analysis
Dogecoin price is up today, fueled by the news of China’s latest stimulus package and declining exchange balances. Dogecoin (DOGE) is one of the best-performing cryptocurrencies on Sep. 26, with its price rising by over 6% to reach a monthly high of $0.1154. One big driver of this rally is China’s latest stimulus pledge to boost its economy and the declining DOGE balance across top crypto exchanges. For more details, read the full article on Cointelegraph.
China's Economic Stimulus Boosts Dogecoin
Dogecoin’s gains today coincided with the conclusion of the 24-member Politburo led by China’s Premier Xi Jinping. 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, especially in the wake of its ongoing real estate market crisis.
“The positive sentiment following these announcements likely spilled over into risk-on markets, benefiting Asian stocks and, in turn, cryptocurrencies like Dogecoin.”
Cryptocurrencies such as Dogecoin often respond to macroeconomic signals, as improved liquidity conditions and risk-on sentiment tend to boost demand for speculative assets. The People’s Bank of China (PBOC), under Governor Pan Gongsheng, unveiled a $142 billion stimulus package, further fueling market optimism. Such packages have preceded strong crypto market rallies in recent months.
Declining Exchange Balances Support Price Increase
Dogecoin’s price rise today further coincides with declining DOGE balances across top crypto exchanges like Binance and Bybit. According to CoinGlass, Binance has witnessed $6.12 million worth of withdrawals from its trading platform, while Bybit has seen $4.46 million in outflows. These outflows are larger than the inflows witnessed across other crypto exchanges, including Coinbase and Kraken. This trend indicates that investors move funds elsewhere rather than keeping them on exchanges for trading, typically a sign they expect the asset’s price to rise and are preparing to hold it for the long term.
Technical Analysis: Falling Wedge Breakout
Today’s Dogecoin gains are part of a breakout emerging from its prevailing falling wedge pattern. A falling wedge pattern forms when the price trends lower inside a range defined by two contracting, descending trendlines. It resolves when the price breaks above the upper trendline and rises by as much as the maximum distance between the upper and the lower trendline.
As of Sep. 26, DOGE had entered the breakout range of its wedge pattern, eyeing $0.193—the 0.786 Fibonacci retracement line—as its upside target. In doing so, the cryptocurrency must break above its interim resistance levels: the 200-day exponential moving average (200-day EMA) at around $0.117 and the 0.236 Fib line at around $0.122.
Meme Coins: Market Leaders and Breakout Tokens
Meme coins are leading the market rebound with Moo Deng leading the charge—and Shiba Inu, MOG, Pepe, and others following suit. For more insights, check out the full article on Decrypt.
“Sector leader Dogecoin (DOGE) is up 8% on the day, while second-place token Shiba-Inu (SHIB) has spiked 21%, Solana’s top meme Dogwifhat (WIF) has popped up about 5%, and Ethereum’s Mog Coin (MOG) has jumped 11%. Over the past 24 hours, the meme market has been one of the best-performing crypto categories, with such coins rising by nearly 11% on average.”
Moo Deng is the biggest winner, as it skyrocketed 34% on the day and 597% over the last week. This meteoric rise makes the hippo-inspired coin currently the largest token launched via Pump.fun in terms of market cap. In second place on that list is Iggy Azalea’s MOTHER token, which has surged 13% on the day and 121% over the last week.
Dogwifhat (WIF): Potential for Extended Bull Run
Solana-based Dogwifhat (WIF) price has increased by 30% since September 23 amid growing interest in meme coins. However, several indicators observed on-chain suggest that WIF’s breakout is only the start of a prolonged bull run. For a deeper analysis, visit BeinCrypto.
One indicator suggesting a potential price surge for WIF is the Open Interest (OI), which measures the total value of open contracts related to the crypto. When Open Interest increases, traders in the derivatives market are gaining more exposure and adding more liquidity. In WIF’s case, the recent price increase to $2.25 has been accompanied by a notable jump in Open Interest to $311.94 million. In March, when WIF consistently recorded this kind of move, the meme coin’s price hit $4.78. Therefore, a further hike might push the price toward that level and probably higher.
WIF Price Prediction
Technical analysis of the daily chart shows that WIF’s bounce from $1.15 in August was a crucial catalyst for its recent run to $2.25. Furthermore, the Moving Average Convergence Divergence (MACD) is positive, indicating that the momentum is bullish.
Although WIF’s price might jump past $4, it could encounter resistance at $3.78. A successful breakout will help it reach $4.58 and possibly $5. However, rejection at $3.78 could invalidate this bias. If that happens, the meme coin’s value could drop to $1.69.