Dogecoin (DOGE) is seeing a strong performance on 26th September, with its price rising over 6% to hit a monthly high of $0.1154. This surge is attributed to China’s latest economic stimulus measures and a significant drop in DOGE balances on major cryptocurrency exchanges.
China’s Stimulus Boosts Market Sentiment
The rally in Dogecoin’s price follows China’s 24-member Politburo meeting, led by Premier Xi Jinping. The Chinese government announced plans for increased fiscal spending, support for the ailing property sector, and substantial interest rate cuts. These measures were designed to combat slowing economic growth and stabilize the country’s real estate market.
BTC/USD vs. CSI 300 index daily performance comparison. Source: TradingView
This news generated positive market sentiment, particularly in risk-on assets like cryptocurrencies. Historically, increased liquidity and economic optimism tend to boost speculative investments, leading to stronger demand for cryptocurrencies like Dogecoin. Earlier in the week, the People’s Bank of China (PBOC) also announced a $142 billion stimulus package, further fuelling market optimism.
Declining DOGE Balances on Exchanges
Another factor contributing to Dogecoin’s price increase is the reduction of DOGE balances on leading crypto exchanges such as Binance and Bybit. According to data from CoinGlass, Binance has seen withdrawals of $6.12 million worth of DOGE, while Bybit has experienced $4.46 million in outflows.
DOGE supply across its 100 million—1 billion and 1 billion—infinity balance cohorts. Source: Santiment
These outflows suggest that investors are moving their holdings off exchanges, likely anticipating a price rise and preparing for long-term investment rather than short-term trading. This behavior is typically a bullish signal for an asset, indicating confidence in its future price performance.
Dogecoin Breaks Out of Falling Wedge Pattern
Dogecoin’s price movements are also influenced by a technical breakout from a falling wedge pattern. This pattern, characterized by two descending trendlines, signals a potential upward price move when broken. DOGE has now entered the breakout phase and could target $0.193, the 0.786 Fibonacci retracement level, provided it surpasses resistance levels at $0.117 and $0.122.
