Dogecoin Welcomes Strong Rebound

After Federal Reserve Chairman Jerome Powell spoke at the Jackson Hole conference, Dogecoin experienced a strong rebound, with a price surge of nearly 9% in a single day, reaching $0.2346. Accompanying this wave of increase, DOGE's daily trading volume surged over 120%, showcasing significant buying power.

In terms of market capitalization, Dogecoin today broke through the $35 billion mark, briefly surpassing the stablecoin issuer Circle. For a token initially regarded as a 'joke', such market capitalization performance is quite impressive. This rebound has also helped DOGE recover most of the decline this month, with the cumulative drop over the past 30 days narrowing to about 3%.

From a technical perspective, signs of DOGE's rise had already begun two days ago. At that time, the MACD on the 4-hour chart turned bullish after experiencing a decline of about 13.6%, signaling a rebound. Today's strong performance further confirmed this trend: the MACD and signal line continued to expand, with a significant increase in the green bars on the histogram. The price briefly touched the $0.24 region but then retraced slightly. Notably, this price level is a key resistance that Dogecoin has repeatedly tested this year but has struggled to break through; it remains to be seen whether the market can effectively hold this level.

Looking ahead, market sentiment will be profoundly influenced by macroeconomic data. Next week, the U.S. will release the GDP report and the PCE price index (the inflation indicator favored by the Federal Reserve). If inflation data exceeds expectations, it may dampen the current optimistic expectations for interest rate cuts, suppressing the upward momentum in the crypto market; conversely, if the data is weak, it may continue to provide support for this round of risk assets, injecting more momentum into cryptocurrencies like DOGE.