Dogecoin Price Surges 12% Amid Grayscale Fund Launch and ETF Approval Odds

Dogecoin, the largest meme coin in the crypto industry, has seen a significant price surge of 12% this week, reaching a high of $0.3340. This uptrend is attributed to the launch of a new investment fund by Grayscale, which has sparked optimism among crypto investors.

Grayscale Fund Launch and ETF Approval Odds

Grayscale’s announcement of a new investment fund has been a primary catalyst for Dogecoin’s rebound. The company has noted that Dogecoin has evolved from a meme coin into a tool for global financial inclusion. This development coincides with growing optimism among crypto investors that the Securities and Exchange Commission (SEC) could approve a spot Dogecoin exchange-traded fund (ETF).

Polymarket’s odds of approval have 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 that the approval of a spot Dogecoin ETF would be a highly bullish event, with the coin eyeing a move above $1 in February.

Conditions for a $1 DOGE Price in February

For the DOGE price to reach $1 in February, four things may need to happen:

  • 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 to Bitcoin.
  • Bitcoin must maintain its bullish momentum. Altcoins like Dogecoin and Shiba Inu tend to perform well when Bitcoin is thriving.
  • 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’s technical indicators would need to align for the price surge to materialize.

Dogecoin Price Analysis

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.

Furthermore, 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.

A potential price surge of nearly 200% would represent an increase of approximately $150 billion in Dogecoin’s market capitalization.

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