Key Insights
- •The Grayscale Dogecoin ETF (GDOG) is slated to launch on the NYSE on Monday.
- •Dogecoin's price has fallen below the $0.14 support level due to a general cryptocurrency market selloff.
- •An analyst has suggested that the Dogecoin price could decline to as low as $0.07, citing a technical signal.
Market participants had been optimistic about the upcoming launch of the Dogecoin ETF, especially as the altcoin ETF market experiences increased activity.
This optimism emerged as the broader cryptocurrency market experienced significant losses, shedding nearly $280 billion in value over the past two days.
The price of Dogecoin (DOGE) has also seen a considerable retreat, mirroring the broader market's selloff.
Despite this recent downturn, the cryptocurrency has managed to maintain its support above the $0.13 mark.
In this context, a prominent analyst has indicated a potential risk of a Dogecoin price crash below the $0.10 level, or even lower.
The analyst also highlighted that DOGE needs to regain a critical support level to avert such a decline.
Investors are currently assessing whether institutional investment can provide the necessary support for the leading meme coin.
The launch of the Dogecoin ETF on Monday could potentially enhance the meme coin's appeal among traders, which might, in turn, contribute to a strong recovery for the asset.
Dogecoin ETF Launch Captures Market Attention
The cryptocurrency market has recently been significantly impacted by the impending launch of the Grayscale Dogecoin ETF, identified by the ticker GDOG, on the New York Stock Exchange (NYSE).
The launch is scheduled to take place on Monday, November 24.
Bloomberg ETF analyst Eric Balchunas has confirmed this development, emphasizing the growing institutional interest in altcoin-focused investment funds. He also mentioned that Grayscale is preparing to launch an XRP ETF on Monday and that the Grayscale Chainlink Trust (GLNK) is expected soon.
This event follows the recent approval for listing on Nasdaq for 21Shares’ 2X Long Dogecoin ETF, which will trade under the ticker "TXXD".
This new fund is designed to offer investors leveraged exposure to Dogecoin, aiming to provide twice the daily performance of the meme coin, after accounting for fees and expenses.
The introduction of the Dogecoin ETF is part of a larger trend where institutions are increasingly investing in altcoin-focused funds.
Beyond Dogecoin, other altcoins such as XRP, SOL, and Chainlink are also experiencing significant investor interest, with ETFs for these assets in development.
DOGE Price Declines: Is Further Downturn Imminent?
Despite the considerable attention surrounding the Dogecoin ETF, the price of DOGE has continued to trade in negative territory. Market observers attribute the recent dip in the meme coin's price to the broader cryptocurrency market's retreat this week.
Furthermore, the overall market capitalization of meme coins saw a decline of nearly 3%, settling at $38.42 billion at the time of reporting.
At present, Dogecoin is trading close to a flat line at $0.1383, with its trading volume decreasing by 19% to $2.85 billion.
The cryptocurrency reached a 24-hour high of $0.1431 and a low of $0.1341. The failure to maintain support at the $0.14 level has led a prominent analyst to fuel speculation about a further decline in the meme coin's price.
In a recent post on X, analyst Ali Martinez stated that if the DOGE price cannot reclaim the $0.14 mark, it could potentially fall as low as $0.07.
Consequently, investors are closely monitoring Dogecoin's recent price action, particularly in light of the escalating excitement surrounding the upcoming ETF launch.