Recent price increases of Dogecoin have been driven by a combination of technical breakouts and rumors surrounding an upcoming ETF launch, potentially pushing the price to $0.33.
Technical Analysis and Breakout
Dogecoin (DOGE) price has increased by 7% in the past 24 hours with trading volume surging over 160%. This surge comes as bulls attempt to breakout from a long-standing symmetrical triangle pattern, formed by a descending upper trendline and ascending lower trendline. Yesterday's 5% gain signaled a potential resolution of the tightening consolidation into the triangle's apex, while today's trading data tests a decisive breakout, currently trading above the upper trendline. A daily close above ~$0.23 would confirm the breakout.
Fundamental Drivers of Growth
Beyond the technical breakout, underlying factors are also contributing to Dogecoin's recent surge, most notably growing speculation around the impending approval of a Dogecoin ETF. Last week, news broke that REX Shares, the firm behind the first Solana staking ETF, in partnership with Osprey Funds, has filed for the REX-Osprey™ DOGE ETF, which could potentially launch as early as this week, leveraging a less commonly used regulatory structure under the Investment Company Act of 1940, allowing them to bypass traditional SEC delays.
Outlook and Risks
The height of the triangle is approximately $0.10, which gives a technical target around $0.33 if the breakout is confirmed. However, if Dogecoin's price loses $0.22 and closes back inside the triangle, it risks a fakeout scenario, potentially triggering a retrace to $0.20.
Thus, the rise in Dogecoin's price amid both technical and fundamental factors presents optimistic prospects, although the presence of risks necessitates caution from traders.
