Fxstreet
Nov 13, 2024 12:40 AM
Dogecoin (DOGE) rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund (ETF).
Dogecoin has witnessed double-digit gains in the past 24 hours, rising over 15% as the general crypto market rallied. It currently trends as the best-performing asset among the top 100 tokens, seeing over 130% gain on the weekly timeframe, per CoinGecko data.
The momentous rise saw Dogecoin's market capitalization cross the $56 billion mark, surpassing that of automotive company Ford in the process. DOGE's impressive run dates back to October 13, since which it has risen over 250%.
Following another round of price rally on Tuesday, Bloomberg senior ETF analyst Eric Balchunas hinted at the possibility of a DOGE ETF after Canary Capital's S-1 application for an HBAR ETF.
Eric Balchunas played a crucial role in the Bitcoin and Ethereum ETFs approval timeline by providing regular updates and insights on regulatory developments.
Hence, most Dogecoin community members are showing increased interest after Balchunas' tweet.
Crypto expert Andrew Kang predicted in March that the approval of a DOGE ETF holds a 30% chance, particularly if regulatory clarity improves.
Although there is currently no application for a DOGE ETF, most crypto community members are preparing for asset managers to submit one soon, especially after Republican candidate Donald Trump won the US presidential elections last Tuesday.
As anticipation builds for a DOGE ETF, Dogecoin could extend its gains and tackle its all-time high resistance.
Additionally, a DOGE ETF could lower the skepticism toward meme coins by giving institutional investors exposure to Dogecoin's price.
Dogecoin sustained over $127 million in liquidations in the past 24 hours, with liquidated long and short positions accounting for $63.69 and $64.10 million, per Coinglass data.
DOGE aims to tackle the resistance level of a key rectangular channel near $0.4483 after charging above the $0.3517 resistance of August 2021. A firm close above $0.4483 will see DOGE tackling the $0.5900 resistance of May 2021 and stage a rally toward a new all-time high.
DOGE/USDT daily chart
Crypto analyst Ali Martinez also suggests a similar bullish outlook as DOGE's Market Value to Realized Value (MVRV) is at 45.65%. This is below the 78% mark, which often indicates market tops in previous cycles. Hence, DOGE still has room to run.
Historically, when the MVRV crosses 78%, it signals a market top for #Dogecoin $DOGE. After today’s price correction, the MVRV has reset to 45.65%, suggesting that #DOGE still has room to climb. pic.twitter.com/kUVMGEsURQ
— Ali (@ali_charts) November 12, 2024
The Relative Strength Index (RSI) is in the oversold region, indicating a potential price correction is imminent.
A daily candlestick close below $0.3517 will invalidate the bullish thesis.