TL;DR
- Analyst Ali Martinez suggests that Dogecoin (DOGE) could experience significant gains if it stays above the $0.17 support zone.
- The potential launch of a spot Dogecoin ETF, with applications acknowledged by the SEC from major firms like Grayscale and Bitwise, could boost investor access and demand, positively impacting the price in the long term.
The Bullish Scenario
The biggest meme coin in terms of total market capitalization has not been in its best shape lately. Its price currently trades at roughly $0.19, representing a 20% decline on a two-week scale.
However, the negative performance has not stopped numerous analysts from projecting optimistic predictions. The popular X user Ali Martinez recently suggested that Dogecoin (DOGE) remains on a bullish path as long as the valuation stays above the $0.17 support zone. He forecasted that the uptrend could result in an all-time high of a whopping $2.74 (which is a 1,300% increase from the current price level).
It is important to note that despite its enhanced volatility in the past months, DOGE has been trading above the depicted mark. The last time it traded below $0.17 was in November 2024.
Another industry participant who has weighed in lately is the X user Trader Tardigrade. Earlier this week, they assumed that Dogecoin’s Average Directional Index (ADX) indicates a potential surge ahead. The technical analysis tool is part of the Directional Movement System developed by J. Welles Wilder and measures the strength of a market trend.
The ADX doesn’t necessarily signal whether the asset’s value will go up or down, but it helps assess whether it is following a strong direction or moving within a range. It’s commonly used with other indicators to validate the strength of the movement.
Last but not least, we will touch upon DOGE’s Relative Strength Index (RSI), which also hints that the meme coin’s price may head north in the short term. Over the past several hours, the ratio has neared the bullish zone of 30, suggesting that Dogecoin might be oversold and poised for a rally.
DOGE ETF on the Horizon?
One major factor that may act as a catalyst for the price of the token is the possible launch of a spot Dogecoin exchange-traded fund (ETF) in the United States. The list of well-known entities that have displayed their intentions to introduce such a product include Grayscale, Bitwise, Osprey Funds, and others. The US SEC has acknowledged some of the applications over the past few months.
That type of investment vehicle will enable investors to gain exposure to DOGE without dealing with exchanges or worrying about self-custody methods. This could bring more people into the ecosystem and have a positive effect on the price in the long run.
Various community members have recently speculated on X that the launch of a spot DOGE ETF might be incoming. According to Polymarket, the approval odds before the end of the year stand at around 66%.
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