The popularity and potential of Dogecoin have been rekindled with an increase in its trading price over recent days. The cryptocurrency responded positively and bounced back after experiencing a dip, hitting a vital support level in September. This upsurge came shortly after potential investors showed increased interest in the digital coin.
The Bullish Bounce
The price of Dogecoin rebounded significantly after dropping to a key support level. This was spurred by a possible green-light from the Securities and Exchange Commission (SEC) for the Dogecoin Exchange Traded Funds (ETFs) backed by Grayscale and Bitwise. These prospects have improved investor confidence, despite the general consensus that Dogecoin is unlikely to hit the $1 resistance level in the near term.
Dogecoin notably appreciated to $0.2630, a positive 16% variation from its lowest point in September. This significant jump has instigated conversations among crypto enthusiasts and investors over whether the cryptocurrency would eventually rally up to $1 in trading price. This assumption hinges on the SEC’s approval of the DOGE ETFs later this month.
Expectations for ETF Approval
These are indeed exciting times for DOGE as an approval from the SEC could trigger a robust bullish breakout. The appeal of the coin is further reinforced by two potential exchange-traded funds backed by Grayscale and Bitwise. These names are widely recognized, further amplifying trust and investor confidence in Dogecoin.
The general expectation is that the SEC will approve the majority of ETFs lodged by crypto exchanges. Bloomberg’s analyst, Eric Balchunas, for instance, pinpointed how a newly released generic standards list could influence the SEC’s decision. The list specifies what the SEC will consider during the approval process. One crucial factor on the list is the availability of a regulated futures product for each cryptocurrency. With Dogecoin futures already in existence, the chances of the coin’s ETF getting endorsed are bolstered.
Spotlight on DOGE ETF
The SEC has approved the DOGE ETF under the Investment Company Act of 1944. Launched in September, this fund trades under the ticker DOJE and has managed to amass over $21 million in assets. Its success provides a glimpse into what could potentially happen with other funds, which could end up being even more successful given their lower expense ratios.
The potential ETF’s success will contribute significantly to the price of Dogecoin. Additionally, the current Octobull rally, notorious for boosting cryptocurrencies, will also positively impact Dogecoin’s price.
Can DOGE Price Hit $1?
The daily trading chart revealed that Dogecoin hit its lowest at $0.2200 in September before bouncing back to $0.2631. This low coincided with the lower side of the ascending channel. Currently, the coin has surpassed both the 50-day and 100-day Exponential Moving Averages (EMAs). Exceeding these levels is a bullish sign indicating increasing investor confidence and control.
Cryptocurrency analysts forecast that the coin’s price will continue to surge, with bulls targeting a year-to-date high of $0.3088, representing a 20% increase from the current level. However, for Dogecoin to hit the $1 threshold, its price would need to increase by over 250%. This surge seems less likely due to the formation of a rising wedge pattern, a technical pattern that suggests a future price drop.
In conclusion, the Dogecoin has shown impressive resilience, bouncing back from its low point in September. While supporters remain hopeful for the coin reaching $1, it is important as an investor to thoroughly research and understand the underlying market dynamics before diving in.