Key Insights:
- Dogecoin price broke out and surged more than 10% in just a few hours.
- On-chain data showed active addresses remained consistent, a sign that user activity was sticky even without speculative mania.
- Compared to past peaks, sentiment remained relatively muted, another indicator this was accumulation-driven, not distribution.
Fed Chair Jerome Powell’s speech on Friday, the 22nd, sparked a market rebound. Dogecoin (DOGE) price rose by more than 10% in just a few hours, very close to the $0.24 level.
Attention is shifting in the markets with altcoins now doing better regarding returns against Bitcoin (BTC). The last three months have seen Ethereum lead altcoins in what could be termed a mini Altcoin season. However, Dogecoin has not had as much gains.
When writing, the largest memecoin was being outperformed by Fartcoin, SPX6900, among other top caps. Recent breakout on Dogecoin price triggered similar reactions with SPX (roughly 16%) and Pudgy Penguins (about 11%), leading the memecoin sector.
Fundamental and technical signals were all in alignment. Reasons leading to the 10% surge in Dogecoin price and why it could lead to a memecoin resurgence offered significant insights. Why was Dogecoin price up?
Dogecoin Price Prints Massive Bull Candle
Technical analysis on the Dogecoin price chart showed a massive bull candle formed in less than two hours. First, price nuked early buyers, tricking sellers into a trap. DOGE sharply dropped just before Jerome Powell made his speech, luring more traders into sales.
Dogecoin slipped below the monthly open and was rejected instantly. A sign last seen in the August 5th market crash. The following Doji Pattern indicated that buyers had defended the $0.20 level. The price is now approaching the weekly opening with two days remaining.
The volume also spiked to $126 million during Powell’s speech and the aftermath. The structure break turned the Dogecoin price bullish. The resultant reaction remained uncertain in the long run, but it could stabilize Dogecoin’s cyclical fluctuations.
Fundamental Catalysts: Fed Chair Speech, Trump Involvement, Capital Rotation
Similarly, fundamentals aligned with the breakout. Jerome Powell’s speech was conservative; thus, the markets reacted positively. He noted that despite the elevation in inflation, the recent readings showed a cool-off from previous levels. However, the level was still above their target rate for 2025.
Also, Trump Jr.’s involvement added more confluence to the surge. Thumzup, linked to Trump Jr., acquired $50 million DOGE, adding to their crypto portfolio. Institutional involvement linked to President Trump’s family gave the memecoin a more bullish case.
President Trump also called for rate cuts in September. Trump has been vocal on Truth Social, threatening to fire Powell if he doesn’t cut rates. However, Trump’s powers did not mandate the potential to fire Powell as the Federal Reserve is independent within the government by law. Thus, the rate cut decision for next month remained unclear, with odds of ‘NOT’ happening taking an upside turn as earlier analysis by The Market Periodical noted.
Meanwhile, the rebound also denoted potential capital rotation to altcoins. According to CoinMarketCap data, altcoins reacted more aggressively than Bitcoin, suggesting money flowed more into coins like Dogecoin.
Onchain Reasons Why DOGE Price Surged 10%
Still, onchain metrics looked good. Per the Cumulative Value Days Destroyed (CVDD) indicator, the price was confined between horizontal levels. Coins were in an accumulation phase rather than a distribution. A signal that precedes market runs, especially that Altcoin season was trending on Crypto Twitter (CT).
Whales were also in buy mode when the memecoin was at a discount. Over 680 million was accumulated in August, with 104 million DOGE worth $20 million being the most recent transaction. This came as the Dogecoin network hashrate hit a new ATH, strengthening the security of the memecoin.
Still, the network stress index stayed low, confirming Dogecoin’s stability, reflecting this stability in price while seeing growth by gains still subject to its community and overall market reactions.
