During Tuesday’s U.S. market session, the crypto market experienced a notable downtick, with Bitcoin struggling to hold a $100k level. The surge in selling pressure triggered the Dogecoin price breakdown below the support of a two-month consolidation, signaling the potential for further downfall. Will the ETF buzz save DOGE from a major breakdown?
Key Highlights:
- The Dogecoin price teases a breakdown below the pennant triangle, signaling the potential for further correction.
- On January 29, 2025, Bitwise submitted an S-1 filing to the SEC for a Dogecoin (DOGE) ETF.
- The DOEG price correction could witness suitable demand pressure at the $0.3 and $0.26 level.
Bitwise Files S-1 for Dogecoin ETF
On January 29, Bitwise Asset Management officially submitted an S-1 filing with the U.S. Securities and Exchange Commission (SEC) for a Dogecoin (DOGE) ETF. If approved, this would mark the first-ever exchange-traded fund for Dogecoin, further cementing the meme coin’s position for stock-related products.
The S-1 submission is a crucial step toward launching a regulated Dogecoin investment vehicle for institutional and retail investors. With the success of Bitcoin and Ethereum ETFs, other altcoin-based ETFs are likely to gather investors’ interest, bolstering a broader market recovery.
Dogecoin Price Faces Risk For Another Breakdown
Over the past two months, the Dogecoin price witnessed heightened volatility, evidenced by the long-wick rejection candles on both sides. While this consolidation in the daily chart shows no initiation from buyers or sellers, the 4-hour chart shows the formation of a bull flag pattern.
The chart setup is characterized by two downsloping trendlines that provide dynamic resistance to support the falling DOGE price. Generally, the pattern allows buyers to recuperate the bullish momentum for the next breakout.
However, the Dogecoin price teases a breakdown triangle support, signaling the potential for further downfall. If the daily candle closes below $0.326, the sellers will strengthen their grip over this asset to chase $2.5.
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