NOIDA (CoinChapter.com) — Bitwise Asset Management’s recent filing for a Dogecoin (DOGE) exchange-traded fund (ETF) has rekindled discussions about the potential institutionalization of meme-based cryptocurrencies. However, despite the news, DOGE price did not show much excitement, barely rising 6% in the past 24 hours to reach a daily high near $0.365 as of Jan. 24, 2025.
DOGE prices have been under bearish pressure since Jan. 18, with the memecoin continually forming lower highs. The price action suggests that the DOGE price might be reacting to more than just hype-generated cues. For instance, the broader market sentiment remained under pressure after the Bank of Japan (BOJ) raised its benchmark interest rate to 0.5%, the highest level since 2008.
The move, aimed at tackling inflation and strengthening the yen, has fueled risk-off sentiment globally, driving investors away from riskier assets like equities and cryptocurrencies. Moreover, DOGE price’s muted reaction highlights a disconnect between market expectations and price action, suggesting other forces, such as overall sentiment or liquidity concerns, are at play.
ETF Applications and Market Implications
Bitwise Asset Management’s registration of a statutory trust under the name “Bitwise Dogecoin ETF” in Delaware has helped DOGE gain in recent discussions about meme coin adoption in institutional markets. However, it’s important to note that this is not an official ETF filing with the U.S. Securities and Exchange Commission (SEC). Bloomberg analyst James Seyffart clarified that the registration is a procedural step and does not guarantee an ETF will materialize.
James Seyffart noted the possibility of a Dogecoin ETF could be ‘big’ news.The filing underscores the potential for further integrating Dogecoin into mainstream financial products. If eventually submitted to the SEC and approved, such a Dogecoin ETF could enhance institutional exposure to the token and bolster its legitimacy as a financial asset. Similar filings, including Rex Shares’ proposals for meme coin ETFs tracking DOGE, BONK, and TRUMP, reflect a growing interest in meme-based digital assets within traditional markets.
Despite the potential bullish implications of such institutional endorsements, Dogecoin’s price has remained subdued. This stagnation indicates that the market may be experiencing “buy the rumor, sell the news” dynamics, where anticipated positive developments are already priced in, leading to a lack of immediate upward movement upon official announcements. Moreover, the speculative and hype-driven nature of meme coins like Dogecoin means that their prices are heavily influenced by market sentiment and social media trends, which can overshadow fundamental developments.
Bullish Pennant Sets DOGE Up for Potential Breakout
Dogecoin’s (DOGE) price action on the weekly chart suggests a potential bullish breakout as it consolidates within a ‘bull pennant pattern.‘ A pair of converging trendlines following a strong upward price movement characterize the pattern.
The bull pennant pattern is a classic technical indicator suggesting the potential continuation of an existing upward trend. This pattern emerges when the price of an asset consolidates within a narrowing range after a strong upward move, creating a shape that resembles a small, triangular flag.
For the bull pennant to confirm a bullish continuation, a breakout above the upper trendline, ideally accompanied by a substantial increase in volume, is essential. This volume surge indicates robust buying pressure, reinforcing the likelihood of continued upward momentum.
However, if the breakout occurs without a significant increase in volume, the risk of a false breakout rises. In this case, the price may fall back into the pennant’s range, potentially signaling a reversal.
Yet, despite this bullish technical setup, DOGE remains subdued. The muted performance comes even as institutional interest in the token grows, evidenced by Bitwise’s trust registration and Rex Shares’ ETF filings for meme coins. The lack of immediate price action highlights the influence of broader bearish macroeconomic cues, such as the Bank of Japan’s recent rate hike, which has triggered risk-off sentiment across markets.
The disparity between bullish technical indicators and subdued price performance reflects the current market environment, where macroeconomic headwinds overshadow crypto-specific developments. Investors should watch for a breakout confirmation and improved sentiment to validate the pennant’s bullish potential.
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