Key Insights
- •Dogecoin price prediction shows a possible 40% rise if DOGE stays above $0.15 and breaks $0.162 and $0.171.
- •Weak first-day ETF inflows suggest big buyers are still waiting, even as two DOGE ETFs gain attention.
- •A hidden bearish divergence on the RSI signals short-term risk until the chart turns stronger.
Dogecoin has become active again due to new ETF news. Grayscale launched the first Dogecoin ETF in the United States, named GDOG.
The crypto community anticipated strong buying on the first day, but the total volume was approximately $1.4 million, falling short of the expected $12 million. This lower-than-expected figure indicates that major investors are still adopting a wait-and-see approach, which could impact the Dogecoin price prediction going forward.
Bitwise is also set to launch its own Dogecoin ETF soon, further increasing attention on DOGE. Despite the low initial inflows, the price has seen movement, rising from near $0.13 to around $0.15, representing an increase of about 17%.
Dogecoin Price Prediction Starts With One Warning on the Chart
The DOGE price chart reveals a minor issue even after the ETF-driven bounce. Between November 18 and November 25, the Dogecoin price formed a lower high, while the Relative Strength Index (RSI) recorded a higher high. The RSI is a common tool used to determine if a cryptocurrency has moved too quickly.
When the RSI increases but the price does not follow suit, it is identified as a hidden bearish divergence. This pattern typically occurs within a downtrend, suggesting that while buyers are attempting to push the price up, the overall price action remains weak. This divergence could lead to a price decline, even in the face of positive news.
For stability, Dogecoin must maintain its position above $0.15. A drop below this level would bring the next support zone into focus, around $0.13. If the price fails to hold at $0.13, the chart indicates potential further declines towards $0.12 to $0.11. This lower range corresponds to a previous long wick, which historically signaled significant selling pressure.
ETF Buzz Helps, but Dogecoin Needs Stronger Chart Levels
The ETF developments continue to positively influence market sentiment. The sequential launch of two funds has generated renewed interest in DOGE.
However, the price chart also needs to demonstrate increased strength. The bull-bear power indicator offers an early, albeit small, sign of this shift. This indicator compares the forces of buyers and sellers. Since the beginning of November, the red bars representing sellers have been diminishing, suggesting a gradual weakening of selling pressure.
For a significant upward movement to occur, Dogecoin needs to surpass the resistance levels at $0.162 and subsequently at $0.171, both of which have previously capped price increases. A successful break above these levels could position DOGE to target $0.20. From the current support zone near $0.14, this would represent a potential increase of approximately 40%.
Traders Still Disagree on the Next Move
Some market participants believe Dogecoin is nearing a bullish reversal. One chart analyst has noted that the long-term cycle pattern for DOGE remains active.
Another analyst pointed out that the ETF launch signifies that major financial institutions now consider Dogecoin a component of the broader market. Arkham has also confirmed that the Grayscale ETF is operational and has been funded.
Conversely, others have expressed concern over the weaker-than-anticipated volume on the first day of the ETF launch.
Eric Balchunas, an ETF analyst, has observed that the further an asset is from Bitcoin, the lower the inflows into its corresponding ETF tend to be. This observation aligns with the mixed signals currently present on the Dogecoin chart.
The Dogecoin price prediction continues to lean towards an upward trajectory, contingent upon the asset remaining above $0.15 and successfully breaking through successive resistance levels. While the ETF news provides a positive market sentiment, the chart's technical levels will ultimately determine the actual price direction.