During Monday’s U.S. trading session, the Dogecoin price witnessed a significant dip of 17.6% to traders at $0.196. The selling pressure can be attributed to broader market pullback as crypto buyers failed to sustain bullish sentiment surrounding the U.S. Crypto Strategic Reserve. However, this memecoin price shows potential for a bullish turnaround as the recent filling of spot DOGE ETF sparks a recovery momentum..
Key Highlights:
- The Dogecoin price correction is 20% from retesting the multi-year support of the channel pattern.
- A potential death crossover between the 50-and-200-day EMA could prolong the current market downfall.
Bitwise Files for Spot Dogecoin ETF
On March 3rd, Monday, the asset management firm Bitwise officially filed an application with the New York Stock Exchange (NYSE) to list and trade a Spot Dogecoin ETF (DOGE). This ETF would allow institutional and retail investors to gain exposure to DOGE without directly holding the asset.
While the filing is a significant step forward, approval from the SEC remains uncertain. If approved, Bitwise’s Spot Dogecoin ETF could introduce a new wave of institutional investors into the meme coin space, further legitimizing DOGE as a financial instrument rather than just an internet joke.
The move could significantly boost demand pressure on Dogecoin price and bolster a sustained recovery.
Dogecoin Price Correction Resonates Within Channel Pattern
In the last six weeks, the Dogecoin price has experienced a major downfall from $0.43 top to $0.198 currenct trading value, registering a 55% loss. This downfall, backed by low-volume trading, indicates weak sellers’ conviction, which often leads to quick market recovery.
However, the daily chart analysis shows that the dogecoin’s correction trend is resonating within two trendlines of a falling channel pattern. With sustained selling, the coin price is likely to breach $0.2 support with daily candle closing.
The post-breakdown fall could plunge as the asset 20% down to retest the pattern’s bottom trendline. Historically, this dynamic support has acted as a major accumulation zone for buyers and bolstered a reversal ranging from 42%-68%.
Also Read: Congressional Crypto Caucus Formed to Shape Future of Digital Assets
