Dogecoin price has bounced back in the past few days as investors bought the recent dip after it bottomed at a crucial support level in September.
Summary
- Dogecoin price has rebounded after falling to a crucial support level.
- The SEC is expected to approve the Grayscale and Bitwise DOGE ETFs this month.
- DOGE will likely not hit the resistance at $1 in the near term.
Dogecoin (DOGE) rose to $0.2630, up 16% from its lowest level in September. This article explores whether it will jump to $1 if the Securities and Exchange Commission approves spot DOGE ETFs later this month.
Dogecoin price may rally ahead of spot ETF approval
DOGE price could be on the cusp of a strong bullish breakout as the Securities and Exchange Commission nears its decision on two exchange-traded funds by Grayscale and Bitwise.
Analysts, including Bloomberg’s Eric Balchunas, expect that the agency will approve most of the applied ETFs. He cited the recently released generic standards list, which includes the details that it will look at during the approvals.
One of the criteria is the availability of a regulated futures product. Dogecoin futures already exist, raising the odds of an approval.
Also, the agency has already approved the spot DOGE ETF under the Investment Company Act of 1944. That fund, whose ticker is DOJE, was listed in September and has accumulated over $21 million in assets.
Its success suggests that the other funds could be more successful because they will likely have a lower expense ratio.
Dogecoin price will also benefit from the ongoing Uptober rally that has boosted other cryptocurrencies.
Will DOGE price hit $1?
The daily timeframe chart shows that the Dogecoin price bottomed at $0.2200 in September and then bounced back to $0.2631. Its lowest level coincided with the lower side of the ascending channel.
The coin has now moved above the 50-day and 100-day Exponential Moving Averages. Moving above these levels is a highly bullish sign as it means that bulls are gaining control.
Therefore, the most likely scenario is that the coin continues rising as bulls target the year-to-date high of $0.3088, which is about 20% above the current level.
For DOGE to reach $1, the price would need to rise by more than 250% from the current level. This surge will likely not happen, as it is in the process of forming a rising wedge pattern. A rising wedge is made up of two ascending and converging trendlines, with a breakdown happening when these lines near their confluence.
