Why is Dogecoin price up today?
2024-09-26

Dogecoin DOGEUSD 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.
Xi Jinping pledges more fiscal spending in China
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.
Earlier this week, 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.
Dogecoin balances on top exchanges decline
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. That is further evident in the declining DOGE supply among the wallets holding over 1 billion tokens, as shown below.
In other words, investors move funds elsewhere rather than keeping them on exchanges for trading. This is typically a sign that they expect the asset’s price to rise and are preparing to hold it for the long term.
Dogecoin price enters falling wedge breakout stage
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 Sept. 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; the blue wave) at around $0.117 and the 0.236 Fib line at around $0.122.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.