Dogecoin’s price crashed to a crucial support level as the countdown to potential exchange-traded fund approval by the Securities and Exchange Commission continues.
Summary
- Dogecoin price could be on the verge of a breakout.
- Odds of a DOGE ETF approval in October have jumped.
- The potential DOGE price target is $0.3500.
Dogecoin (DOGE) dropped to $0.2080, down 28% from its highest level in August. The token is hovering at its lowest level since Aug. 7 this year.
DOGE ETF could be approved in October
The main catalyst for the Dogecoin price is the upcoming deadline for the Bitwise ETF on Oct. 18. After delaying this fund several times this year, the SEC may give the go-ahead this time.
If the SEC does that, it may also approve the Grayscale fund, whose deadline is in November, and 21Shares, whose deadline is in January. As it did with Bitcoin and Ethereum funds, the SEC would approve the three on the same day, as doing so separately would give one a first-mover advantage.
Polymarket traders believe that the funds will be approved this year. The poll, which has over $148,000 in assets, places the odds of approval at 80%. These odds have been on an upward trajectory since June, when they bottomed at 44%.
The case for the SEC approving these funds is that Dogecoin is a top cryptocurrency with a market capitalization of over $31 billion. The token is also highly liquid, with a daily volume of $2 billion.
Most notably, Dogecoin has never been considered a security, since, like Bitcoin, it is a proof-of-work cryptocurrency that does not have staking features.
Dogecoin may see strong inflows, but not on the same scale as Ethereum and Bitcoin. About 6% to 7% of their market capitalizations are held by the respective ETFs. If Dogecoin achieves 3%, it would bring total assets to about $3 billion.
Dogecoin price technical analysis
The daily time frame chart shows that the DOGE price has slumped from a high of $0.2864 in July to $0.2100 today. This price is inside the ascending channel that began forming in April this year.
Dogecoin’s price has settled at the 50-day exponential moving average and slightly above the major support/resistance point of the Murrey Math Lines indicator.
Therefore, a bullish breakout will push the coin to the year-to-date high of $0.2865, which is 37% above the current level. A break above that price will push it to $0.3500, the extreme overshoot point of the Murrey Math Lines tool.
