Dogecoin price has plunged to a crucial support level, pointing to an eventual rebound as the deadline for DOGE ETF approvals nears.
Summary
- Dogecoin price has plunged to a crucial support level.
- The deadline for the spot DOGE ETF approvals is nearing.
- Technical analysis points to more gains in September.
Dogecoin (DOGE), the biggest meme coin, was trading at $0.2180, down by 24% from its highest point in July. This retreat has dropped to $32 billion.
Dogecoin price has two main catalysts that may push it higher in the longer term. One of them is that Alex Spiro, Elon Musk’s lawyer, will be the chair of the House of Doge, a $200 million company raising $200 million to accumulate DOGE tokens.
The new plan could mirror what other companies have done in the past few month. BitMine and SharpLink are accumulating Ethereum (ETH) tokens worth billions of dollars.
Similarly, other companies, such as GameStop, Metaplanet, and Strategy, are accumulating Bitcoin. More companies are buying tokens like Tron and XRP.
The other notable catalyst for the Dogecoin price is the upcoming deadline for spot DOGE ETF. The SEC has set the deadline for the Bitwise and Grayscale DOGE ETFs at October 18 and the 21Shares one on January 9.
Polymarket data shows that the odds of a spot DOGE ETF have jumped to 80%. As such, there is a likelihood that DOGE price will surge towards the approval date.
Dogecoin price technical analysis
DOGE price chart | Source: crypto.news
The daily timeframe chart shows that the DOGE price has come under pressure in the past few weeks. It moved from a high of $0.2875, its highest point in July.
On the positive side, the coin has remained above the ascending trendline connecting the lowest swings since June. It has moved above the 100-day Exponential Moving Average, while the Average True Range has dropped.
Therefore, the token will likely rebound and potentially get to $0.2875, up by 32% from the current level. A move below the moving average and the ascending trendline will invalidate the bullish outlook.
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