TL;DR
- Dogecoin has retraced to the key 0.618 Fibonacci level, with analysts predicting a potential rebound and even a surge to a new all-time high of $2.30.
- The SEC’s acknowledgment of Grayscale’s DOGE ETF application boosts optimism, with a 76% chance of approval by year-end, potentially driving long-term price growth.
Bullish Reversal in the Cards?
The largest meme coin in terms of market capitalization – Dogecoin (DOGE) – started the new year on a positive note, with its price exceeding $0.40 approximately a month ago. However, since then, bearish sentiment has taken over, leading to a decline in the asset’s value. Currently, DOGE is trading at around $0.27 (based on CoinGecko’s data), marking a 30% drop over the past 30 days.
Recent analyses suggest that the asset may be poised for a rebound. According to X user Ali Martinez, Dogecoin has pulled back to the 0.618 Fibonacci level, often referred to as the Golden Ratio. This level is significant as it reflects natural patterns observed in financial markets; many consider it a critical point where cryptocurrencies, including Dogecoin, often reverse during downtrends.
Further, analyst JAVON MARKS has forecasted a possible breakout for DOGE, citing its historical performances during previous bull cycles as a potential indicator for reaching new heights. They suggest that Dogecoin could surge to an all-time high near $2.30, representing an impressive increase of over 701% from current levels.
“Dogecoin’s numbers and historical performances suggest that $2.28758+ can be levels that prices are set to go and meet,” stated the trader.
The Possible Effect of a DOGE ETF
One significant factor that could positively influence the price trajectory of Dogecoin in the long term is the potential approval of a spot Dogecoin exchange-traded fund (ETF) in the United States.
This week, the US SEC acknowledged Grayscale’s application to launch such a product. This means the regulator will now conduct a detailed review of this investment vehicle, with an official decision expected within the next 240 days. A favorable decision would provide American investors with new avenues to engage with the token without requiring direct purchase from exchanges or self-custody issues.
Eric Balchunas, a senior ETF analyst at Bloomberg, regarded the SEC’s acknowledgment as a positive indicator:
Doge ETF filing has been acknowledged by SEC, is part of normal process but that’s a good sign in the case as these altcoins (which in the past were told to withdraw right after filing) bump up slightly our (already pretty good) odds of approval.
Additionally, the odds for a DOGE ETF approval before the end of 2025 have increased to 76%, according to Polymarket. This anticipation further fuels optimism among investors about the potential for price growth following a successful ETF launch.
The post Dogecoin (DOGE) Price Predictions: Is a New ATH Incoming? appeared first on CryptoPotato.
