Dogecoin price dropped by nearly 5% on Friday as the recent crypto market crash accelerated. It was trading at $0.1420 at press time, down by ~53% from the highest point in September. So, will the upcoming 21Shares DOGE ETF launch spark a rebound?
21Shares Dogecoin ETF to Launch Next Week
A potential catalyst for the Dogecoin price rebound is the upcoming launch of the 21Shares 2x DOGE ETF, which is expected to happen early next week.
This launch will happen on the same week that the Grayscale DOGE ETF launches, giving American institutional investors a chance to invest in the biggest meme coin in the crypto industry.
Still, the main challenge is whether these ETFs will attract substantial inflows from investors. A source of concern is that the REX-Osprey DOGE ETF (DOJE), which was launched two months ago has not gained traction among investors.
It has gained only $24 million in assets and is now trading at a 2% discount to its net asset values.
Another major concern is that altcoin ETF inflows have not prevented the ongoing sell-off in key coins. For example, Solana price has crashed to its lowest level since April despite its ETFs attracting substantial inflows since the launch. Similarly, XRP and HBAR prices have dropped after the launch of their ETFs.
The DOGE price action will also depend on the prevailing market conditions in the crypto industry. Its price will drop if the crypto market crash accelerates, and vice versa. The soaring liquidations and potential market manipulation have triggered this crash.
DOGE Price Technical Analysis
The daily timeframe chart shows that the Dogecoin price has been in a strong downward trend in the past few months. It has lost over 53% of its value as the price moved from $0.3063 in September to the current $0.1425.
A closer look shows that the current price is an important support level, where it has failed to move below several times since March this year. DOGE has always rebounded by double digits whenever it moved to that level.
Therefore, the most likely DOGE price forecast is where it rebounds as investors buy the dip ahead of the upcoming 21Shares and Grayscale DOGE ETF launches. A rebound could push it to the next key resistance level at $0.200, which is about 45% above the current level.
Dogecoin Price ChartOn the flip side, a drop below this support level is a sign that bears have finally prevailed, which will push it much lower in the coming weeks. Such a drop may push it to the next key support level at $0.10.
Source: https://coingape.com/markets/dogecoin-price-finds-support-can-the-21shares-grayscale-doge-etfs-spark-a-surge/
