Dogecoin's price increased for three consecutive days this week, driven by market stabilization and Grayscale's launch of a new fund for accredited investors.
Dogecoin Price Rise and New Fund Launch
Dogecoin, the largest meme coin in the crypto industry, climbed to $0.3340, gaining 12% from its lowest point this week. The primary catalyst for Dogecoin’s rebound was Grayscale’s announcement of a new investment fund. The company noted that Dogecoin had evolved from a meme coin into a tool for global financial inclusion.
Expectations of ETF Approval and Its Potential Impact
The timing of this development matched growing optimism among crypto investors that the SEC might approve a Dogecoin exchange-traded fund. Approval odds on Polymarket soared to 56% from 27% earlier this month. Rex Shares and Bitwise have already filed for spot Dogecoin ETFs. Some analysts believe that such an approval would be highly bullish for Dogecoin.
Technical Indicators Analysis and Potential Trends
Four key factors might drive Dogecoin's price to $1 by February. First, the SEC's openness to approving more crypto ETFs, as Dogecoin is a proof-of-work coin like Bitcoin. Second, Bitcoin's bullish momentum must continue. Third, favorable inflation data from the US could increase the likelihood of the Federal Reserve cutting interest rates. Finally, Dogecoin's technical indicators need to align positively to sustain its growth momentum.
Dogecoin exhibits positive trends amid market stabilization and investor interest. Future ETF approvals and technical analysis might continue to support its upward momentum.
