Introduction to Dogecoin’s Rally
Dogecoin price is experiencing a sharp rally, driven by a combination of technical breakout and growing speculation around the approval of a Dogecoin ETF. This surge in price action suggests a potential move towards $0.33.
Technical Breakout
The Dogecoin price is up 7% in the past 24 hours, with trading volume increasing by over 160%. Bulls are attempting to break out from a long-standing symmetrical triangle pattern. This pattern is formed by a descending upper trendline and an ascending lower trendline.
Price Action and Targets
Yesterday’s 5% gain signaled a potential resolution of the tightening consolidation into the triangle’s apex. Today’s candle is testing a decisive breakout, currently trading above the upper trendline. A daily close above this level ($0.23) would confirm the breakout. The height of the triangle is approximately $0.10, projected from the breakout point ($0.23), which gives a technical target around $0.33.
Risks and Fakeout Scenario
However, if Dogecoin price loses $0.22 and closes back inside the triangle, it risks a fakeout scenario. This could potentially trigger a retrace to $0.20. It is essential for the price to maintain its current level to avoid such a scenario.
Fundamental Catalysts
Apart from the technical breakout, fundamental catalysts are also contributing to Dogecoin’s recent surge. Most notably, growing speculation around the imminent approval of a Dogecoin ETF is driving the price. Last week, news broke that REX Shares — the firm behind the first Solana staking ETF — in partnership with Osprey Funds, filed for the REX-Osprey™ DOGE ETF.
ETF Approval and Regulatory Structure
The REX-Osprey™ DOGE ETF could potentially launch as early as this week. Unlike other pending crypto ETFs, REX is leveraging a less commonly used regulatory structure under the Investment Company Act of 1940 (the “40 Act”). This allows it to bypass traditional SEC bottlenecks such as the 19b-4 process. The approval of this ETF could further fuel the bullish momentum of Dogecoin.
Conclusion
In conclusion, Dogecoin’s price is rallying sharply due to a combination of technical breakout and growing ETF speculation. The potential launch of the REX-Osprey™ DOGE ETF is a significant catalyst for this surge. As the price action points towards a potential move to $0.33, it is crucial to keep an eye on the daily close and the upper trendline to confirm the breakout. For the latest updates on Dogecoin and other cryptocurrencies, visit bitpulse.