Dogecoin ETFs Launch with Slow Momentum, But Analysts See Potential for $1

The debut of spot exchange-traded funds (ETFs) that track Dogecoin in the United States experienced a less-than-exciting reception. The initial week saw limited inflows into Grayscale and Bitwise's ETFs, despite the high expectations surrounding these products. However, some technical analysts remain optimistic about a possible price surge for Dogecoin, targeting $1, provided vital support levels are maintained.

Key Takeaways

The launch of Dogecoin ETFs saw only modest inflows, with Grayscale's fund attracting just $1.8 million on its first day.
Total inflows for the first week were approximately $2.16 million, indicating cautious interest from investors.
Technical analysts suggest that DOGE may be poised for a price rally, especially if the support level at $0.08 holds.
Insights from various crypto analysts point to potential targets for Dogecoin reaching between $0.33 and $1.

Dogecoin

Slow Start for DOGE ETFs

On November 24, Grayscale introduced its Spot DOGE fund (GDOG), but the first-day inflow totaled only about $1.8 million, which fell short of expectations. Eric Balchunas, a senior ETF analyst at Bloomberg, had anticipated around $12 million in volume for the debut.

Data from SoSoValue revealed that the total net inflows for both Grayscale and Bitwise's DOGE ETFs during the first week barely surpassed $2.16 million. This suggests a degree of caution among institutional and retail investors when it comes to putting money into this popular meme cryptocurrency. In comparison, other altcoin ETFs, like those for Solana (SOL) and XRP, have enjoyed a much stronger opening. The underwhelming interest in the Dogecoin ETFs has led to concerns about their ability to generate renewed enthusiasm for DOGE, as many supporters had hoped.

Technical Analysis Indicates Potential Upside to $1

Despite the current lack of demand for the ETFs, various technical analyses suggest a more promising outlook for Dogecoin's future price movements. Crypto analyst Ali Martinez has pointed out that key support for DOGE is around $0.08, with resistance near $0.20. This support area is significant, as it aligns with previous instances where DOGE traded below $0.10 before climbing to $0.50 after the U.S. elections.

Dogecoin Key Price Levels. Source: @ali_charts On X

Additionally, another analysis by crypto expert XForceGlobal suggests that Dogecoin may be finishing a long corrective phase and could be gearing up for a fifth wave of upward momentum, according to the Elliott Wave Theory. If this wave materializes, it could push prices significantly higher, with initial targets projected between $0.33 and $0.50, and a longer-term goal of reaching $1.

DOGEUSD now trading at $0.14. Chart: TradingView

Similarly, Trader Tardigrade has noted that Dogecoin has rebounded into a long-term support zone that previously sparked significant rallies. His observations on a weekly chart suggest that this trend could serve as a foundation for the next major price movement. Historically, Dogecoin's price has made substantial jumps of over 80%, 210%, and even more than 440% since October 2023 when bouncing from this ascending trendline.

Dogecoin Technical Analysis. Source: @TATrader_Alan On X

The analyst contends that if the support level at $0.15 remains intact, Dogecoin may repeat its historical patterns and experience a gradual climb of 610% to reach $1 by 2026.

As of now, Dogecoin is trading at $0.15, poised either to rebound or drop below its support level.

Featured image from Unsplash, chart from TradingView