Dogecoin price is close to breaking out of a multi-month falling wedge pattern, fueled by investor hype over an upcoming ETF launch.

According to data from crypto.news, Dogecoin (DOGE) has dropped 26% over the past month and 53% from its September high. Trading at $0.14, the altcoin is now hovering at its lowest level since April this year.

Dogecoin price has been in a free fall because of the lack of any major bullish catalysts in the past few months and a broader market downturn amid macroeconomic concerns and declining odds of a Federal Reserve rate cut in its December meeting this year. Its futures open interest has dropped to about $1.42 billion, significantly lower than in October, when it recorded $6 billion.

Despite this, the legacy meme coin is expected to be back in focus this week as the crypto market prepares for the launch of several ETFs. Grayscale’s spot Dogecoin ETF, GDOG, is set to go live later today, while 21Shares is expected to launch its own Dogecoin ETF product in the coming weeks.

Through these investment vehicles, both institutional and retail investors in the United States will be able to gain regulated exposure to Dogecoin without needing to hold the asset directly. This could serve as a major milestone for mainstream adoption, potentially increasing capital inflows and helping support Dogecoin’s long-term valuation.

As reported by crypto.news, asset manager Canary Capital recently launched a similar ETF product focused on XRP just two weeks ago. At that time, XRP price rallied nearly 18% ahead of the ETF launches, but the gains were short-lived as the broader crypto market remained under pressure from prevailing macroeconomic conditions.

Hence, investors should be cautious that a similar scenario could unfold for Dogecoin as well, especially given the ongoing market uncertainty. While ETF-related excitement may trigger short-term price gains, sustained momentum would likely depend on broader improvements in market sentiment and risk appetite.

Dogecoin price analysis

Despite the recent weakness, on-chain indicators seem to project a potential reversal for Dogecoin in the short term. On the daily chart, Dogecoin price has been trading within a falling wedge pattern, a structure formed when the price moves within two downward-sloping trendlines that gradually converge.

At press time, it was close to breaking out of this bullish reversal pattern, which often signals a shift in trend.

As such, a breakout from the pattern at $0.15 could likely drive the price as high as $0.25, a level that lies nearly 71% above the current price and is calculated by adding the height of the wedge to the breakout point.

Momentum indicators have also started to shift in favor of the bulls. Notably, the MACD line has completed a positive crossover with the signal line, while the RSI has edged higher after rebounding from the oversold zone.