Dogecoin’s price has experienced stagnation this week as the probability of a Dogecoin exchange-traded fund (ETF) gaining approval has declined. Initially, Dogecoin saw a 6% rise on December 2, marking a 7.5% increase over the week. However, a recent poll on Polymarket indicates that the odds of the U.S. Securities and Exchange Commission (SEC) approving a spot Dogecoin ETF this year have fallen to 26%, a decrease from 50% the previous week.
This development contrasts with more optimistic expectations for other cryptocurrencies. For example, Polymarket users believe there is a 76% chance that the SEC will approve a Solana ETF and a 70% chance for a Ripple ETF this year. The lowered expectations for a Dogecoin ETF are likely due to the lack of any financial institutions submitting applications. Meanwhile, WisdomTree, an asset manager with $100 billion under management, has filed for a Ripple ETF. The SEC is expected to make a decision on proposed Solana ETFs from firms such as Grayscale, 21Shares, and VanEck by January 31.
Despite the current situation, there remains a possibility that a company might apply for a Dogecoin ETF if the SEC, under the leadership of Paul Atkins, shows more openness towards crypto funds. Considering Dogecoin’s similarities to Bitcoin as a proof-of-work crypto, such an ETF might receive prompt approval.
Dogecoin remains a significant player in the cryptocurrency market, with a market valuation of $50 billion, a figure slightly below that of MicroStrategy by $16 billion. MicroStrategy currently operates multiple leveraged and covered call ETFs. Crypto ETFs have been popular among institutional investors looking to enter the crypto space. Currently, Bitcoin ETFs manage over $105 billion in assets, while Ethereum ETFs hold more than $12 billion.
Analyzing Dogecoin’s performance, its price reached a low of $0.2635 in December, but it has since climbed to $0.3382. It is nearing its 50-day moving average, with the Relative Strength Index (RSI) attempting to break above the downward trendline. The Percentage Price Oscillator demonstrates a bullish crossover, and investor interest persists in accumulating DOGE, as indicated by the sustained elevation of the accumulation and distribution indicator. This suggests potential for recovery, with resistance anticipated at $0.4836, the highest price recorded in 2024. Nonetheless, a decline beneath the support level of $0.2650 could indicate further losses.
