Dogecoin’s price rose for three consecutive days this week as the cryptocurrency market stabilized and following the launch of a new fund for accredited investors by Grayscale.
Dogecoin (DOGE), the largest meme coin in the crypto industry, climbed to a high of $0.3340, gaining 12% from its lowest point this week.
The primary catalyst for Dogecoin’s rebound was Grayscale’s announcement of a new investment fund. The company noted that Dogecoin had evolved from a meme coin into a tool for global financial inclusion.
This development coincided with growing optimism among crypto investors that the Securities and Exchange Commission could approve a spot Dogecoin exchange-traded fund. Polymarket’s odds of approval jumped to a record high of 56%, up from 27% earlier this month. Rex Shares and Bitwise have already filed for a spot DOGE ETF.
Some analysts believe the approval of a spot Dogecoin exchange-traded fund would be a highly bullish event with the coin eyeing a move above $1 in February. Moving from the current $0.3391 to $1 would be a near 200% jump would represent an increase of nearly 200%, which is within the realm of possibility in the cryptocurrency market. If this happens, Dogecoin’s market capitalization would reach approximately $150 billion.
Four things may need to happen for the DOGE price to get to $1 in February. First, the SEC needs to be open to more crypto ETF approvals. If this happens, DOGE will likely be approved since it is a proof-of-work coin similar with Bitcoin (BTC).
Second, Bitcoin must maintain its bullish momentum. Altcoins like Dogecoin and Shiba Inu tend to perform well when Bitcoin is thriving. Third, the United States would need to release encouraging inflation data, which could increase the likelihood of the Federal Reserve cutting interest rates sooner than expected.
Dogecoin price analysis
Finally, Dogecoin’s technical indicators would need to align for the price surge to materialize. On a positive note, Dogecoin has moved above a key resistance level at $0.2278, which was the highest swing on March 25 and the neckline of a slanted triple-bottom pattern.
Additionally, Dogecoin has formed a bullish pennant pattern, consisting of a tall flagpole followed by a symmetrical triangle. This pattern often precedes further gains as the two trend lines approach their convergence point.
Further, like Stellar lumens, Dogecoin appears to be in the fourth wave of the Elliott Wave pattern, suggesting that the next move could be the fifth and final bullish wave. In this scenario, Dogecoin’s price could rise to the 78.6% Fibonacci retracement level at $0.6086, followed by a retest of its all-time high of $0.7600. A breakout above $0.7600 would strengthen the case for a rally toward $1.
