TLDR
- In just a week, Dogecoin's price plummeted below $0.20, resulting in a 26% decline.
- The SEC has deemed meme coins like Dogecoin non-securities, which may clear the path for ETF authorization.
- The MVRV ratio indicates a scenario where holders are enduring 20% losses on an unrealized basis.
- From a technical perspective, there's an emergence of a Cup & Handle pattern near $0.16896.
- With the end of July on the horizon, the chances for ETF approval appear to be increasing.
Dogecoin, a favorite among cryptocurrencies, has seen a significant drop in worth, falling beneath the $0.20 threshold and is currently valued at $0.185. This marks a 10% decline over the past day and a notable 26% dip in a week's span.
This price movement is happening as the U.S. Securities and Exchange Commission (SEC) has clarified the status of meme coins. According to their recent clarification, meme coins, Dogecoin included, are not categorized as securities under federal laws.
This clearer regulatory landscape seems to have influenced the chance of a Dogecoin ETF. Data from Polymarket shows the odds of a DOGE ETF approval by the end of July are at an all-time high. Such approval could act as a springboard for its price rise.
$DOGE The chart patterns hint at a bullish momentum as it nears a pivotal turnaround spot.
⏳ We’re currently observing the price touching down to $0.16896, aligning with signs of a Cup & Handle pattern.
⏳ Breaking past the $0.29124 mark could very well confirm a surge toward fresh peaks.
⏳ Long-term target sits near $0.50… pic.twitter.com/nphcqoJzhA
— Rose Premium Signals 🌹 (@VipRoseTr) February 26, 2025
Despite the optimistic view with ETF potential, the present market dynamics keep posing hurdles for DOGE investors. The past month shows a negative MVRV ratio, signaling around 20% unrealized losses for traders.
Technical Analysis
Short-term technical cues are showing red flags. On the daily chart, the RSI has plunged to 23, reaching levels reminiscent of the March 2023 banking turmoil when Silicon Valley Bank and Signature Bank's troubles rattled the markets.
With consecutive breaks through crucial support zones, speculation about further declines is mounting. Analysts are drawing attention to the $0.12 mark as a vital support level, with talk suggesting a fall below could usher further downtrends.
During this dip in price, trading volume has shown an uptick, highlighting robust sell-side forces. This hints at heightened trading activity, primarily skewed towards selling.
Among the trends catching eyes is the potential Cup & Handle formation delineating around the $0.16896 mark. Should this pattern solidify, it might indicate a possible reversal in price trajectory.
The fluctuating broader crypto market continues to impact Dogecoin's dynamics. The prevailing market apprehensions are intensifying the sell-off across numerous digital assets. including DOGE.
In the shadow of the bearish undertone, the likelihood of ETF endorsement rises. While potentially a beacon for price uplifts, current market ambiance seems to overshadow this aspect. a Dogecoin Traditionally, a negative MVRV ratio has been viewed as suggestive of possible buying windows. Yet, current sentiments seem to instill a cautious approach among traders.
Looking at the daily chart, price trends reflect a persistent downward shift, breaking through erstwhile support. Such breakdown has heightened the sell pressure.
A 23 reading on the RSI usually suggests oversold conditions, hinting at a potential rebound. However, present market scenarios have not yet allowed for such a shift.
Recent observations suggest that a considerable number of long-term holders persist with their investments despite the downturn. This behavior perhaps reflects an underlying trust in the asset's future prospects, albeit facing contemporary pressures.
The support vicinity near $0.16896 is under close scrutiny by market enthusiasts. How this plays out could indeed shape Dogecoin's forthcoming price movements.
Maisie is a seasoned journalist focusing on Crypto & Financial news, with her work featured on Moneycheck.com, level-up-casino-app.com, Computing.net, and she's the Editor in Chief at Blockfresh.com.
