Dogecoin's price has surged past resistance levels, re-entering an upward trend with the launch of the first spot DOGE ETFs in the USA. This technical breakout, supported by increased volume, signals a renewed momentum for growth. If Dogecoin maintains its critical support levels, it may pave the way for a broader recovery.
ETF Launch Sparks Institutional Access
The launch of DOGE ETFs on Wall Street has formalized long-anticipated institutional access to the meme coin market. With Grayscale’s GDOG fund trading on NYSE Arca, it witnessed a first-day volume of $1.41 million, although without net fund inflows. Concurrently, Bitwise’s BWOW ETF provided a regulated investment channel for DOGE. This development has allowed the price to consolidate around the $0.14 mark, setting the stage for a rally.
Between September and November, sell pressures from major wallets drove down the price of DOGE. However, the increased legitimacy from ETFs has renewed confidence in the meme coin. Bitcoin's leap above $91,000 has further supported market sentiment, strengthening Dogecoin’s technical outlook.
Technical Patterns Indicate Growth
Dogecoin has surpassed its multi-week resistance at $0.1525, accompanied by a substantial volume surge. Daily trading volume hit 616.9 million coins, which is 135% above the average of 262.1 million coins. On the charts, a sequential rise at $0.1499 and $0.1548 has technically confirmed the uptrend.
Hourly closings above $0.1550 suggest that buyers are in control, while the expanding wedge formation on the 12-hour chart indicates that, if macro conditions remain favorable, prices could extend up to $0.27. In the short term, maintaining above $0.1548 is crucial to retesting the $0.157 and $0.16 resistance levels.
Downside risks are limited to retreating to $0.1499 if the price dips below $0.152. If the ascending channel formation holds, the next targets are $0.179 and $0.27.