Dogecoin Price Drops 3% Despite Bitwise DOGE ETF Filing: Is a Rally to $1 Imminent?

Highlights:

• Dogecoin price dwindles 3% to $0.34 as trading volume drops.
• The recent drop comes despite Bitwise filing for Dogecoin ETF.
• Crypto analysts predict that Bitwise DOGE ETF approval could send Dogecoin to $15. 

The Dogecoin price has plummeted 3% to exchange hands at $0.34 as of 10:22 UTC amid the waning crypto market. Its daily trading volume has notably dipped 68% to $$2.67, showing a decrease in market activity. DOGE is now down 6% in a week; however, it has risen 10% in a month and a whopping 352% in a year. 

Bitwise Files for DOGE ETF

On Wednesday, Bitwise filed to launch a Dogecoin ETF to Delaware’s Department of State’s Division of Corporations. 

JUST IN: Bitwise files Dogecoin $DOGE ETF.

— Watcher.Guru (@WatcherGuru) January 22, 2025

The SEC’s approval would validate Dogecoin as an investment and bring conservative investors into the market. Meanwhile, the senior ETF analyst at Bloomberg has verified that the filing is legit.

Bitwise Doge ETF likely coming soon.. and yes I checked and this is def legit (vs some whack job committing forgery for a quick pump a la BlackRock XRP that one time). pic.twitter.com/MxoswD0IFy

— Eric Balchunas (@EricBalchunas) January 22, 2025

DOGE Price Trajectory

DOGE boasts a market cap of over $51 billion, primarily driven by community enthusiasm and endorsements from figures like Elon Musk. The token, known for its ability to rally sharply on the back of positive trends, has yet to react to the new ETF filing.

The filing has sparked mixed reactions across social media, with some celebrating the potential listing as a transformative moment for Dogecoin. Elsewhere, a well-known crypto analyst, Ali-Charts, is optimistic that the potential DOGE ETF approval will send Dogecoin’s price to $15. 

#Dogecoin $DOGE ETF will send it to $15! https://t.co/4peKi93NZX pic.twitter.com/gRqDdoXhob

— Ali (@ali_charts) January 22, 2025

That said, the Dogecoin price technical indicators suggest a potential bullish breakout. The daily chart timeframe shows that the bulls aim to flip the $0.36 resistance into a support floor. In such a case, the buyers could initiate a rally, reaching $0.42 in the short term. 

Elsewhere, the RSI is sitting slightly below the 50-mean level. Increased buying appetite will cause the bulls to hurtle above the mean level. Moreover, there is more room for the upside before DOGE is considered overbought.

Looking at the Moving Average Convergence Divergence, the blue MACD line(0.0033) is on the verge of making a bullish crossover above the orange signal line (0.0038). Meanwhile, its position below the orange signal line suggests selling momentum exceeds the buying pressure. 

Can Dogecoin Price Rally to $1?

Based on the one-day chart outlook above, the bears have the reins. However, with the DOGE ETF approval speculations, the Dogecoin price could reach $1 soon. If the bulls flip the $0.36 into the support floor, they will target the next resistance key at $0.42. A breach and break above that area will see the DOGE price rally, potentially hitting $1.

On the downside, a rejection of the $0.36 resistance level could see the DOGE price drop. While the levels between $0.36 and $0.33 remain critical to watch, only a slip below $0.30 would trigger panic selling.