Following Bitwise’s Dogecoin exchange-traded fund (ETF) registration with the Securities & Exchange Commission (SEC) on Tuesday, Dogecoin (DOGE) is down 4%. If the top meme currency breaks the support level of a triangle channel, it might drop 37%.
Dogecoin ETF gains momentum with Bitwise filings
On Tuesday, Bitwise filed an S-1 registration statement for a Dogecoin spot ETF with the SEC. This is the regulator’s second filing of a DOGE ETF.
Given its Dogecoin Trust filing in Delaware last week, Bitwise’s S-1 file was not unexpected. Following Donald Trump’s inauguration as US president, the demand for meme coin exchange-traded funds (ETFs) has increased, and this new filing contributes to that demand.
A series of ETF applications for memcoins,ns includias DOGE, BONK, and Donald Trump’TRUMP,MP were submitted last week by REX Shares and Osprey before Bitwise’s filing.
In actuality, a large number of people wish to invest in Dogecoin. It trades for morthaner $1 billion per day and is the sixth-largest cryptocurrency asset globally by market capitalization, Bitwise CIO Matt Hougan told the Financial Times.
Given the debate that frequently surrounds the meme coin category, this elicited conflicting reactions.
However, it is anticipated that the most recent DOGE ETF may face fewer obstacles to clearance because of the new presidential administration.
Investor confidence in the possible acceptance of DOGE ETFs has also increased as a result of the recent establishment of the US Department of Government Efficiency (D.O.G.E.), which uses the Dogecoin logo.
According to Nate Geraci, president of financial advisor The ETF Store, “meme coins would take this to an entirely new level, even though there are plenty of dubious investments packaged into ETFs.”
In other news, Bitwise, VanEck, 21Shares, and Canary Capital were among the companies that filed new documents for Solana ETFs with Cboe BZX.
The exchange had previously filed the 19b-4 documents in November, but regulators had not responded on their approval.
According to the refiling, the exchange is hopeful that the ETFs will be approved by the incoming SEC administration.
If DOGE breaches the critical support level, it faces a 37% fall.
On the daily chart, DOGE is trading inside a falling triangle. The leading meme coin’s drop, which started on January 22, is getting worse.
DOGE may drop almost 37% to $0.1905 if it maintains a strong close below the triangle’s lower border support level. The triangle’s height is measured, and the level is projected downward from the possible breakout point.
DOGE may find support close to the $0.2106 mark as it declines.
Dominant bearish pressure is indicated by the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) both being below their neutral levels. Given that the stochastic oscillator (Stoch) is in the oversold area, DOGE might be ready for a resurgence.
If the daily candlestick closes over $0.4523, the thesis will be deemed invalid.
